The Australian government yesterday responded to soaring oil prices by offering drivers a subsidy of A$2,000 ($794) to convert their car to run on cheaper liquefied petroleum gas.

John Howard, prime minister, told parliament that the innovative subsidy scheme, which will cost a total of A$1.6bn over eight years, was a sensible and efficient way for mineral-rich Australia to reduce its reliance on oil from the Middle East and instead tap into an energy resource that it possesses in large amounts.