Ethanol mandate could strip regular unleaded fuel option from southeast Queensland mo

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Ethanol mandate could strip regular unleaded fuel option from southeast Queensland motorists

by Ursula Heger From: The Courier-Mail September 06, 2010 12:00AM

UNDER THE PUMP: Petrol giants say it will be difficult for service stations to offer choice. Source: The Daily Telegraph
REGULAR unleaded petrol could be stripped from most southeast Queensland service stations when the state's ethanol mandate is introduced at the end of the year, fuel industry experts have warned.

Motorists are already struggling to find service stations that stock regular unleaded fuel, after petrol companies began removing the bowsers and replacing them with the 10 per cent ethanol-blend, known as E10, ahead of the mandate.

Up to 166 of the state's 900 service stations, predominantly across the southeast, have removed regular unleaded bowsers, including 123 of BP's 329 Queensland service stations, 33 Caltex sites and six Shell sites.

But while E10 is between 2¢ and 3¢ a litre cheaper than regular unleaded, it is consumed at a higher rate – meaning motorists spend more money using the biofuel.

The oil companies say they have had to convert the service stations ahead of the State Government's planned introduction of a 5 per cent ethanol quota, which will require almost 50 per cent of fuel sold in the state to be E10.


Independent retailer Neumann Petroleum has converted four of its 75 sites, but executive general manager Charles Wright said the retailer would struggle to meet the ethanol quotas.

He said the introduction of the ethanol mandate would see oil companies focus on converting predominantly southeastern petrol stations to only sell the ethanol-blended fuel or premium products.

"What you are probably going to see to meet the mandate, is that the southeast corner will be predominantly E10, so that when you add the whole state together you come up with your quota," Mr Wright said.

A spokesman for Mobil, which has converted 26 service stations in Queensland to sell E10 but continues to offer regular unleaded at all retailers, said it would be difficult to continue to offer a choice.

"At least 50 per cent of your regular unleaded sales have to be E10, you can't achieve that very readily though continuing to offer a choice to customers – you won't get there," he said.

Peak-motoring body RACQ spokesman Gary Fites said the southeast's motorists would increasingly struggle to find regular unleaded fuels as the mandate is introduced.

He said up to 30 per cent of motorists could not safely run their cars on ethanol-blended fuels, meaning they will have to pay an extra 10¢ to 12¢ for premium fuels.

The State Government plans to introduce legislation for the ethanol mandate this month or next.

Treasurer Andrew Fraser, who is responsible for the mandate's introduction, refused to answer questions from The Courier-Mail. But a statement released from his office said the ethanol mandate "preserves choice" in the state.





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