A major oil supplier has urged Europe to increase its production of biodiesel in order to better cope with higher diesel demand.

A senior figure from Total said that Europe needed to boost biodiesel production to accompany the increase in regular diesel production by oil refiners, according to Reuters.

Jacques Blondy, head of agricultural development at the refiner, told the news agency that European authorities had to switch away from ethanol production, which was not needed but encouraged in order to help the continent's farmers.

"The European market definitely is, and for a long time will be, a diesel market," he said.

"We'd much prefer to have local production, but if there is not enough, we cannot afford to have disruptions," he added.

Europe currently has to import diesel from Russia and the Middle East.

It is expected that in 2006 diesel will overtake petrol as the main fuel for new passenger vehicles in Europe, increasing its need to import.

The EU is aiming to make biofuels contribute 5.75 per cent of transport fuel by the end of the decade.

Ÿ Adfero Ltd