The energy taskforce will respond to the Parer report and a range of other issues including advice on whether the $5 billion Sasol Chevron gas-to-liquids fuel project at Barrow Island off West Australia should receive taxpayer funding.

In what should have major implications for both gas pipelines and oil refiners, the taskforce is also charged with examining further reform of the depreciation regime for major assets. The taskforce will also make recommendations on rationalising the downstream petroleum market.

Five cabinet ministers, five departmental deputy secretaries and a range of assistant secretaries have been seconded to the energy policy taskforce being run out of Mr Howard's own Department of Prime Minister and Cabinet.

It is understood that the taskforce will have to produce policies ready for implementation by the end of April.