Australia's new government may cut a vital subsidy to oil recyclers.
The Australian oil recycling industry could be out of pocket to the tune of 50 cents per litre if the current adminstration follows recommendations from last year's Product Stewardship Oil scheme.
Tim Rose, managing director of Australia's largest oil recycler, Southern Oil believes this could leave the oil recycling industry unviable. "The Gladstone plant is only the fourth refinery in Australia, and we own two of them - it's not a big money spinner, so people aren't generally investing in the sector," he said.
The company handles 80% of Australia's total recycling operations and relies on the subsidy to continue in business according to Rose. The governmental move would appear at odds with other parts of the world - such as Russia, the US and Europe - where recycling is being actively encouraged and expanded.