E10 bowsers being removed

... in Queensland blaming low demand, a lack of supply caused by the floods and the need to meet NSW ethanol demands.

Biofuels Association Australia CEO Heather Brodie says E10 bowsers are not being withdrawn in NSW because it has a mandate that 6 per cent of total petrol volumes must contain 10 per cent ethanol.

"Bowsers have been removed which is unfortunate because there is a growing consumer awareness and desire to be able to purchase the fuel," she says.

"Unfortunately biofuels need to be mandated to encourage their use."

Brodie says oil majors such as BP and Shell have removed E10 bowsers in Queensland and Victoria, while independents such as Neumann, Matilda and United are increasing their E10 availability.

"The independents are very much behind the product," she says. "Caltex has also been increasing their E10 bowsers. It's obviously a management decision as to the product line-up they are going to have, but I'd love all servos to have E10."

BP Australia spokesman Richard Wise says the E10 bowser issue in Queensland was caused by the January floods.

"Our supplier declared force majeure and wasn't able to supply for about six months so we had to make a quick decision to convert all of our bowsers to ULP," he says.

"Sucrogen have been back up and running for about a month or so. We've taken that supply and are using it in NSW under our obligations to the mandate and we are assessing how to role E10 back into the Queensland market once we get a level of security of supply. Probably from the first quarter of next year."

Shell Australia spokesman Paul Zennaro confirms they are removing E10 bowsers.

He says there have been "troublesome" issues with supply even before the floods, but says the key factors in their decision are the "sustained low demand for E10 and increasing demand for premium products and diesel".

"Our underground tanks can't supply every type of fuel," he says.

"Demand for diesel fuel is growing because of the increasing number of diesel passenger cars and light commercial vehicles using diesel. Another important factor is the increasing number of imported vehicles requiring 95 octane fuel. We don't recommend using E10 94 in 95-rated vehicles."

A government mandate on E10 has been resisted by the RACQ, claiming it takes away consumer choice and the fuel is not suitable for older vehicles, power equipment and motorcycles.

However, Brodie says research by the University of Queensland and the Victorian Automobile Chamber of Commerce found that of the new vehicles available last year 99.44 per cent are E10 compatible.

"So the overwhelming majority can take it," she says.

"Of all the vehicles in the Australian carpark more than 80 per cent can take E10. The average car in the carpark is no more than nine years old and those pre-1986 cars that can't take E10 are now 26 years old. For the consumer who wants to do something environmentally friendly, in some instance they have had that choice removed from them."