Queensland Nationals Senator Barnaby Joyce is delighted to hear, today, that Caltex Australia Ltd will be discounting all E10 blended unleaded petrol by 3 cents a litre.
In a media release issued this afternoon, Caltex management announced their existing 41 sites selling the ethanol-blended product including Caltex, Ampol and Bogas, will commence the 3 cent reduction in an attempt to achieve the company’s biofuels supply targets.
“The first step in a long term plan may have happened today with Caltex yielding to the aspirations of Australians for cheaper fuel by reducing the price on E10,” Senator Joyce said.
“This is a clear indication of the association between cheaper fuel prices and ethanol blended fuels. It is recognition that ethanol, at the terminal gate, is around 80 to 90 cents so, the more ethanol in your fuel the lower your price at the pump.
“It is a good move by Caltex but I am a little surprised that there may have been the ability to move more of the savings on to Australian motorists. The monitoring powers the ACCC now has, as brought about by the Nationals, will be able to check this.
This commitment by Caltex also includes two factors often inadvertently overlooked.
The company will pass on its 3 cent cut to its wholesale distributors, thus enabling resellers to deliver it at the bowser.
Caltex plans to not only increase ethanol-friendly sites to 100 by the end of the year but also to invest in tanks and other facilities; improving terminal access and reducing freight costs. The Nationals have been advocating for increased ethanol use for some time and are very supportive of these plans.
“Out of the 41 sites mentioned, 18 are in Queensland - one in my home town of St George. So, I am very pleased with this commitment from Caltex.
Anyhow, all power to Caltex. I hope Australians lobby for further change with their wallets, picking service stations that sell discount ethanol blends. In the meantime, the Nationals will continue to push for a mandate, enabling a reliable market for large scale ethanol production, the cheaper bio-renewable alternative for the internal combustion engine under your bonnet.
Whoops hold on a moment, BP has just announced the same thing! So, Shell and Mobil, what are you up to?