NRMA urges drivers to embrace E10 fuel to extend the nation’s reserves

The nation’s leading motoring organisation has called on drivers to overcome their scepticism of petrol blended with ethanol and turn to E10 petrol at the bowser to save money and extend national fuel reserves as the energy crisis bites deeper.

“Every litre of E10 sold, basically 10 per cent ethanol, which is produced domestically, is taking pressure off the supply chain,” said NRMA chief spokesman Peter Khoury. “We should be encouraging people to reach for the E10 pump.”

Khoury said take up of ethanol fuels in Australia had been low for years, in part due to fears petrol blended with ethanol was either potentially damaging to their vehicles or provided low fuel efficiency, but for most cars built after 2000 this was untrue, he said, with exceptions for some high-performance models.

“We recommend people follow manufacturers advice.”

Part of the controversy over the fuel in Australia and around the world can be traced to campaigns against it led by oil companies, which were concerned about a hit to their sales and loss of control of supply chains, said Khoury.

As far back as 2007 NSW passed a law designed to improve domestic fuel supply security requiring fuel sellers to ensure that 6 per cent of fuel sold was ethanol, a type of alcohol that can be blended with petrol to burn in most petrol engines.

Though the fuel is typically cheaper than regular unleaded, Australians have proven resistant to its use, and the mandated level of sales has never been met, said Khoury.

Between 2010 and 2021 the amount E10 fell dramatically according to a report by the Independent Pricing and Regulatory Tribunal, from around 39 per cent to around 21 per cent. “The NSW government considers that the low market share for ethanol reflects the low price differentials between several types of fuel, and customer concerns about ethanol fuels,” said the report.

According to the NRMA the average price of regular unleaded fuel in Sydney is 244.3 cents per litre, while E10 unleaded was 227.6 cents per litre, up 83.9 cents per litre from the last low point of the Sydney cycle.

While Australian drivers remain sceptical, similar or far higher ethanol blends are accepted around the world. Most fuel sold in the United States contains 10 per cent ethanol, while 15 per cent blends are becoming far more common. Brazil mandates the sale of a 27 per cent blend while in India the average has hit 18 per cent.

While most new vehicles can use the fuel without damaging their engines, the environmental impact of ethanol blends remains complex and contested. While ethanol blended fuel burns more cleanly than regular unleaded, the benefit can be negated when it is manufactured using electricity created by burning coal.

Most ethanol in Australia is made with agricultural waste, which is an efficient use of resources, but in parts of Indonesia and Brazil virgin rainforest is felled to make room for crops cultivated for ethanol and biodiesel production, at great environmental cost, while corn production in the US causes significant greenhouse gas emissions.

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