15th April, 2003

Decision at last on ethanol in petrol

A DECISION by the Federal Government to set a ten percent limit on the proportion of ethanol in petrol and require labelling of petrol at the bowser has been welcomed by the Federal Chamber of Automotive Industries.

The FCAI, which represents Australian carmakers and importers, says the decision will give reassurance to consumers worried about excessive ethanol’s long-term effects on their vehicle engines.

“This is a pleasing decision because it is in line with the automotive industry’s recommendation on the safe level of ethanol in petrol,” said FCAI chief executive, Peter Sturrock.

Last year the FCAI combined with the Australian Automobile Association and the Australian Institute of Petroleum to recommend a ten percent ethanol limit to the Federal Government.

Those combined bodies warned that any proportion above ten percent could cause severe operating malfunctions including loss of driveability, loss of fuel economy and accelerated wear of engine components and fuel lines.

The Federal Government has just received the initial results of tests suggesting that ethanol to petrol blends of 20 percent are not suitable for a proportion of Australia’s vehicle fleet.

Testing found that 20 percent ethanol could cause hesitation and problems with starting in very cold conditions and could cause deterioration of metal, plastic and rubber components in some older vehicles.

“The initial results essentially back what manufacturers have been saying for some time,” said Mr Sturrock.

The FCAI’s members have determined that existing vehicle warranties can support an ethanol level of up to ten percent.

“Federal Government’s decision is good news for consumers, whose vehicles and warranties will no longer be put at risk,” said Mr Sturrock.