Other fuels fall by wayside as retail and bulk diesel consumption grows onward and upward
By Rob McKay | June 5, 2013
Demand for retail diesel for light vehicles is soaring in Australia and the fuel is showing a clean pair of heels to the former fuel of choice – petrol.
In the six and a half years to last December, retail sales have risen 72 percent, petrol has remained static and liquefied petroleum gas (LPG) has fallen 39 percent.
But energy expert Hugh Saddler believes that, short of a supply crisis, heavy transport operators can afford to be relaxed about the trend.
“Retail diesel sales are currently only about 30 percent of total sales, and the increase in bulk sales since 2006 is 40 percent greater than the increase in retail sales, in absolute sales,” Saddler, Principal Consultant – Energy Strategies at consultancy Pitt & Sherry says.
“So, both are strongly driving up diesel consumption.
“About three years ago, the total volume of diesel sold in Australia exceeded the total volume of petrol for the first time, and the gap has grown ever since. But I don’t think it has much implication for price or availability, except in emergency situations.
“Australia sources a large and growing proportion of its total diesel requirements from Asian refineries, and Australian volume is a pretty small fraction of the total East Asia market.”
Pitt&Sherry has just released its Carbon Emissions Index (Cedex) for the March quarter.
In it, bulk diesel sales have increased more than aviation fuels, fuel for light road vehicles and all other petroleum fuels, with Queensland just edging out Western Australia for greatest demand growth while other states languish.
The fuel demand rise contrasts, with consumption of electricity falling 4 percent.
“When changes in bulk diesel sales are viewed on a state by state basis, the likely impact of mining, mining related construction and heavy transport activity is particularly striking,” the report states.
“Changes in sales of light vehicle fuels (defined … as all sales of petrol, automotive LPG and sales of diesel through retail outlets) show a different, but equally interesting pattern, when examined on a state by state basis and taking account of trends in sales of the three constituent components of this category.
Since late 2010, consumption has increased by 9 percent in Victoria, 7 percent in WA, 4 percent in New SouthWales, 3 percent in Queensland, and 2 percent in South Australia. It has decreased in Tasmania and the Northern Territory.
All the increase has been diesel fuel, reflecting a steady shift towards diesel-engine cars plus rapid growth in light commercial vehicle travel
“While it is difficult to attribute causes of changes over time and differences between the states, it is possible that changes in fuel distribution logistics have affected state sales records,” the report adds.
