Downer Lobbies for Reduced Oil Prices

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Media Release

Australian Minister for Foreign Affairs, Alexander Downer

30 March 2001

Today I met with the Venezuelan Foreign Minister, Mr Luis Alfonso Davila, to voice Australia's concerns with the oppressively high world oil price. As one of the world's major oil producers, Venezuela is the current chair of the Organisation for Petroleum Exporting Countries (OPEC). Mr Davila and I are currently in Santiago for the inaugural meeting of the Forum for East Asia-Latin American Cooperation.

I explained to Mr Davila that the current petroleum price of $US27 per barrel posed a major threat to the future growth of the global economy. At a time when there are clear signs of a global economic slowdown, stable and sustainable oil prices are more crucial than ever.

I told Mr Davila that Australia has the second lowest rate of petroleum tax in the OECD and therefore increases in world oil prices have a disproportionately adverse impact on Australian consumers. The Australian Government has taken measures to lower the impact of the price increases on consumers, but I reiterated to Mr Davila that only when international oil prices are substantially reduced will there be true relief for Australian consumers and the right conditions for an improved global economic outlook.

Mr Davila and I agreed that it was fundamentally important that Australia, itself a significant oil producer, continue its dialogue with Venezuela on the future of world oil prices.

Media inquiries: Matt Francis (Ministerial) 02 6277 7500 /
Julie McDonald (Departmental) 02 6261 1555

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