Unleaded petrol now phased out in 2012

The NSW Government has recently extended the phase out date of standard unleaded petrol (ULP) to 30 June 2012 (previously 30 June 2011). This was in response to a possible shortage in supplies of ethanol. This means that ULP may remain available well into 2012.

Before using E10, vehicle owners must check if an ethanol blend is suitable for their vehicle – this information can be found in the owner’s manual, by contacting NRMA Motoring Advice and on the Federal Chamber of Automotive Industries website.

For cars that cannot use E10, premium-grade unleaded petrol without ethanol will continue to be available.

Our May 2010 blog post about unleaded petrol contained several comments that owners found their vehicle had much higher fuel consumption when using E10 compared with ULP.  If your vehicle is in good condition you should not experience much more than the theoretical 3% increase in fuel consumption.

However, if you try E10 and experience an unusually high impact on fuel consumption, here are some possible causes and things you can do about them:

  • Was there water in your fuel tank from earlier contaminated petrol?  If so, the E10 will take the water into solution and your car may run roughly until the first tank of E10 is used up.
  • Is your fuel filter clogged?  Ethanol is a powerful solvent and may loosen residues in your fuel system.  Try changing the fuel filter after the first couple of tanks of E10.
  • Is your ignition system in good condition?  A slightly misfiring spark plug may be exacerbated by E10 leading to a severe misfire and increase in fuel consumption.  If you feel your vehicle is running roughly, have your vehicle serviced if it has not been done recently.
  • Is there an engine check or warning light showing on your dash?  Your engine management system and fuel injection system need to be in good condition.  Modern vehicles are designed to monitor oxygen in the exhaust and should be able to adjust to E10.  However a malfunctioning oxygen sensor or other component may mean that your vehicle is not achieving this.  Have your vehicle serviced if it has not been done recently.

What has been your experience with using E10?  Does the extension of the phase-out date of ULP help you?

Diesel – a greener fuel option?

Since 1 January 2009, diesel fuel has had to meet strict fuel quality standards, now producing a significantly lower amount of sulphur than both ULP and PULP.

National fuel standards

National standards regulating fuels that impact the environment first came into effect in January 2002, brought in to reduce the amount of toxic pollutants in emissions.

Initially, diesel’s sulphur standard was set at 500 parts per million (ppm). As of 1 January 2009, this was reduced to a maximum of 10 ppm.

How does this compare?

From 1 January 2005, the maximum amount of sulphur ULP (91.0 RON) could contain was set at 150 ppm.

Since 1 January 2008, PULP’s (95.0 RON) maximum sulphur is 50 ppm.

Is it time diesel lost its ‘dirty’ reputation?

New generation turbo-diesels have particulate filters which further reduce the amount of particulate (soot) produced in the vehicle’s emissions. On top of that, these new generation diesels are proven to go further on less. For instance, BMW’s new diesel powered 1-series, on sale now, returns less than 5 litres per 100km and emits just 126g of CO2 per kilometer.

The first diesel-fuelled Subaru to be offered in Australia, the Subaru Outback, will be on sale in November this year, and diesel models of the 2010 Mazda CX-7, 2011 Ford Territory and Peugeot’s new 407 are all on the way. It is clear that more and more new car models are being offered with ‘clean’ diesel alternatives.

Coupled with the particulate filter and the new, stringent sulphur emission standards, diesel might just be a viable, greener fuel alternative.

Does diesel still have a ‘dirty’ reputation? Have you thought of diesel as a greener fuel option?

For the full list of diesel quality standards, visit The Federal Government’s Environment website.

What have you done since petrol prices dropped?

Last year, just as the price of petrol was beginning to drop from highs of over $1.70 per litre, we asked how you were dealing with high petrol prices. But now, despite predictions the drop was temporary and it would only continue to rise, the price has fallen, and significantly.

In the past we’ve published blogs about ethanol in petrol, discussed using premium unleaded, fuel alternatives, the benefits of car pooling and the price of diesel, looked at Hybrid technology and asked what you thought about making Sydney’s CBD car free. The Howard Government initiated an LPG grant of $2000 for those who wished to convert their cars from petrol to gas or $1000 to put towards a brand new LPG-powered vehicle, and we asked if you took up the offer

All were prompted by the debate surrounding the high price of petrol.

During the period of extreme petrol prices, the Rudd Government initiated a Fuel Watch scheme to ensure road users were not being ripped off by petrol companies and service station owners.

The number of people using public transport rose to its highest rate in almost 10 years and 2008 saw motorcycles sell in record numbers, increasing by 3.2 per cent on the record set in 2007.

Then, at the end of last year, we saw petrol at its lowest price in almost a decade, falling below $1.00. On the day of writing, the lowest price of the day was 108.9 cents per litre.

So what did you do when prices were high and what have you done since they dropped?

Overcharging for petrol

ACCC petrol commissioner Pat Walker last week revealed Coles Express service stations are the most expensive.

According to the Australian Competition and Consumer Commission’s survey, Coles Express had the highest petrol prices in Sydney, Melbourne, Brisbane and Adelaide. Mr Walker said the commission had identified about 30 Coles Express sites in Sydney that were selling petrol for 155.9 cents a litre, when the average price was 143.3 cents a litre. According to News.com.au, Coles was selling petrol in Melbourne for up to 14 cents more than the city’s average.

Mr Walker advised motorists to shop around for the best price, as those who use shopper dockets may not be getting the discount they think they are.

“It is important that consumers do not automatically rely on their petrol discount voucher to necessarily deliver the lowest price,” he said.

NRMA President Alan Evans said, “The Petrol Commissioner has done well to catch and shame Coles for their over-pricing; he now needs the powers to do something about it.”

Mr Evans said that bad press alone is not enough, as oil companies have grown immune to it. He believes the Commissioner’s powers must therefore be extended so he can:

  • • Force oil companies to drop their prices when they are over-inflated;
  • • Force oil companies to artificially keep their prices down to compensate motorists who have been over-charged;
  • • Fine oil companies.

Have you noticed some service stations regularly being more expensive than others?

The diesel price rise

As recently as six months ago, one of the main incentives for buying a diesel vehicle was the perceived savings on fuel compared to a vehicle using unleaded petrol. But now it’s not uncommon to see the price of diesel up to 25 cents more than regular unleaded, leaving many owners of private diesel vehicles wondering if it was all worth it.

Several factors have contributed to the diesel price rise.

The main reason for diesel being consistently more expensive than standard unleaded petrol is that most diesel is sold under contract to fleet operators, mainly for heavy vehicles. This means the volume sold at your local service station is low, leaving retailers little incentive to discount.

Also previous Government regulations allowed diesel to contain 500 particles per million of sulphur. This has recently been adjusted to allow only 50ppm resulting in the production costs of diesel and unleaded petrol being quite similar.

Diesel prices are also kept high by demand in Asia, where most transport uses diesel.

Many Australians holidaying in New Zealand come back wondering why diesel is significantly cheaper there than it is here. However, Trans-Tasman diesel prices cannot be compared, as diesel in NZ is not taxed at the point of sale. Rather, diesel vehicle owners are required to pay a Road User Charge (RUC) in distance travelled slots, making the actual cost of the journey much more expensive than it appears at the bowser.

Manufacturers and the Government may be pushing diesel as a ‘green’ alternative to petrol, but owners and potential buyers are probably questioning if diesel is indeed a fuel of the future.

What are your experiences with buying diesel? Do you still find it worth the money, despite the recent price rises?