Ethanol supply levels in recovery mode


The supply of ethanol across Australia is improving, according to the Australian Competition and Consumer Commission

By Ruza Zivkusic | February 1, 2012

The supply of ethanol across Australia is improving, according to the Australian Competition and Consumer Commission (ACCC).

Its observation came as the NSW Government scrapped a plan that would have banned regular unleaded petrol from July 1 to push road users toward ethanol blended fuel.

An ACCC spokesman says weather-induced disruptions last year have led to supply shortages of ethanol, but supply levels are recovering.

There are only three ethanol producers in Australia and they all faced a limited supply and higher prices in 2009 due to a mandated consumption.

"The ACCC report shows that the difference between regular unleaded petrol and E10 across Australia decreased last year from 2.6 cents per litre (cpl) to 1.7 cpl," the spokesman says.

"This led to stakeholders suggesting to the ACCC that E10 no longer offers consumers value for money because the price difference does not offset the reduced mileage of E10.

"To this end, the ACCC is monitoring the developments in the emerging markets for biofuels in readiness to consider any possible instances of non-compliance as they arise."




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