Gary,
protests against soaring food and fuel prices are mounting around the world. The poor – and even the middle classes – are seeing their incomes squeezed as the global economy enters a slowdown.

It's not just Australia where people are protesting and wanting governments to do something. People see their way of life threatened and they are anxious. If the Government is serious about climate change, then they should use the taxation system to lower the cost of fuel-efficient cars and increase the price of gas-guzzlers. Don't we want soaring fuel prices to cause hundreds of thousands to switch to public transport? So why not allow people to claim the cost of public transport to and from work as work expenses.

Nan,
there are certainly are mixed messages and stalling tactics by the Rudd Government.

It's troubling given that we are looking at temperature increases between 2-3 degrees and that carbon dioxide emissions are increasing at a rate much faster than expected-- driven by increasing per capita wealth?

Gary,
Indonesia + Malaysia have reduced petrol subsidies and raised domestic petrol and diesel prices. They had to as these subsidies placed severe pressure on public finances. That was not acknowledged by Rudd.

In both China and India the refiners pay world market prices for the crude oil they turn into products. They sell this at a loss---as petrol adn diesel prioces are kep tarticially low to protect consumers--- and the state provides a reimbursment to cover the gap.

If China increases petrol prices too fast this feeds into inflation, which is already running at over 8 per cent.