ACCC issues first E10 petrol price monitoring report
E10 petrol prices in the December quarter 2006 were on average 2.9 cents per litre (cpl) below regular unleaded petrol prices, according to the Australian Competition and Consumer Commission's monitoring report on E10 petrol prices issued today.
Since July 2002, the ACCC has monitored the prices of regular unleaded petrol, diesel and automotive liquefied petroleum gas in all capital cities and around 110 country towns. In August 2006, the Treasurer announced that the ACCC would extend its monitoring of fuel prices to include E10 petrol and provide a report on the price differential between E10 petrol and unleaded petrol on a quarterly basis.
E10 petrol is unleaded petrol blended with 10 per cent ethanol. The ACCC price monitoring compares the price of regular unleaded petrol in various locations with the price of regular E10 unleaded petrol. It therefore excludes premium E10 petrol and E5 petrol.
The results of the first E10 petrol price monitoring report covers the period from August to December 2006.
ACCC Chairman, Mr Graeme Samuel, said during those five months the average difference between the price of regular E10 petrol and regular unleaded petrol in the locations reported on by the ACCC ranged from 2.8 cpl in August and October 2006 to 2.9 cpl in September, November and December 2006.
The ACCC report provides price data for 14 locations across Australia where E10 petrol is available. This represents E10 petrol prices from over 200 service stations selling E10 petrol.
"The number of service stations selling E10 petrol (and the number of locations) included in the ACCC's E10 petrol price monitoring report will increase over time," Mr Samuel said.
E10 petrol price monitoring, as with the ACCC's other fuel price monitoring, involves sampling. For locations to be included in the report a number of data requirements had to be met (including that there had to be at least two service stations selling E10 petrol in a particular location and price data had to be available for at least 14 days in a month).
At some service stations selling E10 petrol the board price may not refect the actual price paid by consumers. In particular, E10 petrol at BP service stations is generally sold at the same price as regular unleaded petrol but consumers can receive a 3.0 cpl discount if they use a BP 'biorewards' card.
To take account of this issue in the report, the average prices of E10 petrol in locations with BP service stations were adjusted downwards by the ACCC on the assumption that the full 3.0 cpl discount is passed on at all BP service stations.
