Biofuels (particularly ethanol blended petrol and biodiesel) are becoming increasingly important in Australia as consumer concerns for the environment increase and they look to alternative fuel sources. Some states have even mandated or are considering mandating the sale of ethanol blended fuels and biodiesel. In NSW there is a mandate for the sale of ethanol blended petrol and QLD has a proposed mandate (though it is currently suspended).
The ACCC is mindful that when markets are developing and competitors are attempting to carve out a niche or gain a competitive advantage, competition, consumer protection and supply issues may be more likely to occur. The ACCC is alert to the emerging market for ethanol blended petrol and biodiesel in Australia and is monitoring developments in readiness to consider issues of compliance with the competition and consumer laws it administers.
In 2010 the ACCC commissioned a study which examined appropriate benchmarks for the price of fuel ethanol in Australia details can be found on the Consultants reports page.
Unlike petrol and diesel which are made from non-renewable resources like crude oil, biofuels are derived from renewable materials such as vegetable and animal products. There are two main types of biofuels used as transport fuels in Australia: ethanol and biodiesel.
Ethanol blended petrol is unleaded petrol which has ethanol added to it. In Australia, the most widely available ethanol blended petrol is E10 which has up to 10% ethanol content. More recently E85 (with up to 85% ethanol content) has become available in Australia but is generally only suitable for purpose built vehicles.
While most new and some older vehicle models can run on E10, some new and many pre 1986 models cannot use it. Check the owner’s manual provided by the manufacturer and vehicle warranty for the recommended fuel for operation.
Pumps dispensing ethanol blended petrol must clearly display either the exact percentage of ethanol in the blend or that the petrol contains ‘up to’ a particular percentage of ethanol. This is contained in an ethanol labelling standard that is administered by the Commonwealth Department of Sustainability, Environment, Water, Population and Communities. See the Fuel Quality Information Standard (Ethanol) Determination 2003 at http://www.environment.gov.au/atmosphere/fuelquality/standards/ethanol/labelling.html.
Biodiesel is diesel fuel produced from plant or animal feedstock containing fatty acids, such as vegetable oils and tallow. Unlike biodiesel, regular diesel fuel is refined from crude oil. In Australia, biodiesel is typically blended with diesel in 5 per cent (B5) and 20 per cent (B20) proportions.
Pumps dispensing petroleum based diesel containing more than 5 per cent biodiesel must be clearly labelled to indicate this. This is contained in the Fuel Standard (Automotive Diesel) Determination 2001 that is administered by the Commonwealth Department of Sustainability, Environment, Water, Population and Communities.
There is a lot of information available on biofuels if you wish to find out more. Below are links to some of the many departments, agencies and organisations that publish information on biofuels:
