Alternative Fuels Australia

Fuel prices prompt call for increased ethanol use

Posted by Car Geek on January 9, 2008

Shell petrol pump. Image from, licenced under CC 2.0. With oil prices breaking the $100 per barrel barrier recently, fuel costs are increasing accordingly and consumers are becoming more worried about the impact that additional cost will have on their household and business budgets.

The answer? Increased ethanol use could hold the key to cheaper petrol prices, according to Renewable Fuels Australia, a major biofuels lobby group. The organisation’s executive director, Bob Gordon, believes that 10 per cent ethanol blends should be 3-4 cents cheaper per litre than standard unleaded fuel.

“There’s a warning bell going off saying we need to be alert to a potential severe fuel price crisis around the corner and we’re not in a very good state for handling that in Australia at the moment,” Gordon says.

E10 is available in most states around the country for a slight discount compared to unleaded fuel, however its availability varies depending on location, with more pumps available to customers in ethanol-producing regions such as Queensland.

Even the most ardent ethanol supporters are likely to see that increasing its use is a short-term solution to what is very likely a long-term problem. Still, there’s no harm in increasing the availability of ethanol blends as a substitute for petrol in the short term; people will go for a cheaper, cleaner fuel as prices increase and farmers will benefit from the increase in demand.

(Source: North Queensland Register)

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2 Responses to “Fuel prices prompt call for increased ethanol use”

  1. Government should have tax incentatives for using alternative fuel, creating more investors intereste in new technologies, as long as it doesn’t cause as much pollution as fossul fuel does, methenol uses corn, which pollutes as well..their is a good site on fuel

  2. Will be neat! Certainly opportune to find something with quality.

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