The parliament of New Zealand has passed the Biofuel Bill in a bid to reduce the country's dependence on imported oil and also reduce the cost of transportation fuels, according to PetrolWorld.

The bill includes controls to guarantee that New Zealand-origin biofuels emit less greenhouse gases than fossil fuels, and do not compete for food resources.

According to PetrolWorld, Brian Cox, executive officer of the Bioenergy Association of New Zealand, said: This is the first step to ensuring that New Zealand is self-sufficient in biofuels. The bill introduces a sales obligation to ensure oil companies selling petrol or diesel also sell a small amount of biofuels.

Mr Cox also said that research showed that New Zealand could become self-sufficient in renewable transport fuel by 2040. He said that passing of the bill provides the necessary conditions for suppliers to enter the market leading to competition and innovation, which could ultimately result in reduced fuel prices.