May 24, 2010
A significant number of Queensland motorists can expect to pay up to 12 cents per litre more for petrol if the State Government’s proposed ethanol mandate is introduced, according to experts.
Under the proposed mandate, five percent of all regular unleaded petrol sold in Queensland must be ethanol blended E10 by January 2011.
The ‘Against Ethanol Mandates Alliance’ (AEMA) says the mandate will reduce the availability of regular unleaded petrol, forcing consumers with incompatible vehicles and engines to purchase premium unleaded.
Australian Lot Feeders' Association President and alliance member, Jim Cudmore, says the major fuel retailers have already begun phasing out regular unleaded with 34 percent less sold in the state since the Government announced the mandate in August 2006.
“More than 20 percent of Queensland vehicles are unable to use ethanol blended fuel. Motorists with these cars will be forced to pay more for premium unleaded as regular unleaded becomes unavailable,” Cudmore says.
“There will be less choice for consumers as the only alternative to E10 is premium unleaded which will either force consumers to pay more, purchase new cars or undertake expensive modifications,” he says.
MANDATE TO AFFECT ‘MOST QUEENSLANDERS’
The news is no better for owners of E10 compatible cars, with drivers forced to pay more for fuel as the discount at the bowser for E10 does not offset its inferior fuel economy compared to regular unleaded petrol.
“Ethanol contains less energy than regular unleaded petrol which means fuel consumption is higher by around 3 percent. Increased fuel consumption means fewer kilometres per tank of fuel, so customers will simply have to buy more fuel,” Cudmore says.
Queensland reportedly uses 200 mega litres of regular unleaded fuel per year with a significant amount used in small engines.
“Marine outboard motors, scooters, vintage cars, small aircraft, many motor bike brands, pumps and much industrial and farming equipment are not E10 compatible due to ethanol’s highly corrosive and moisture attraction properties,” Cudmore says.
As a result, he insists the mandate “will affect almost every Queenslander”.
More costly to produce than petrol, ethanol also requires purpose built storage, distribution and transport infrastructure upgrades to handle its corrosion capabilities.
Cudmore adds that these expensive fuel distributor and service station infrastructure upgrade costs will also be passed on to consumers through higher fuel prices.