Tag Archives: petrol

What have you done since petrol prices dropped?

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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?

How are you dealing with high petrol prices?

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After months of watching it go up, the price of petrol has finally fallen.

But how long will it last? By all accounts the price of petrol will go back up and keep rising, as demand outweighs supply and oil reserves grow smaller.

Months of very high prices have given motorists more than a taste of what’s to come and a lot of people are acting, some by choice and some by necessity. We want to know what you’re doing.

The number of commuters using public transport has reportedly risen to its highest level since 1999. Have you found public transport to be a cheaper option?

Are you trying to be more frugal with your petrol or have you altered your driving technique so you use less?

Have you been getting your car serviced regularly, checking your tyre pressure weekly, going easy on the air-conditioner and carrying as little weight as possible?

Maybe you’ve signed up for a new credit card that offers discounts at certain petrol stations.

Perhaps the cost of petrol has prompted you to sell the V8 for a more economical four cylinder car.

Have you decided a vehicle that runs on alternative fuel is the answer and bought a hybrid, converted to LPG or bought a new turbo diesel?

Or are you going about your business as normal and waiting to see what happens?

What are you doing to cope with high petrol prices?

Your fuel alternatives

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In his column in the June edition of the Open Road e-zine, NRMA President Alan Evans discusses the need for real fuel alternatives so Australian motorists do not have to rely so heavily on petrol.

“The time has come for Australia to reduce its dependence on the petroleum industry once and for all,” Mr Evans says.

Australian motorists are enduring one of the most dramatic jumps in petrol pricing ever seen, with petrol reaching record highs. And, with petrol prices predicted to hit 170 cents per litre within weeks, things are only going to get worse.

Most manufacturers are developing vehicles run on hybrids and, to a lesser extent, alternative fuels in response to rising oil prices and pressure to go ‘green’. Last month, the world’s first mass-produced petrol-electric hybrid, the Toyota Prius, reached a million worldwide sales. Toyota has also announced it will begin production on a hybrid Camry sedan here in Australia in 2010. BMW is busy developing engines that run on alternative fuels, recently unveiling a hydrogen-powered 7-series sedan at the 2008 SAE World Congress.

But is the matter being addressed with the urgency it deserves? Real fuel alternatives are still in the developmental stages, meaning we’ll have to endure ever-increasing petrol prices for a few more years at least.

What fuel alternatives would you like to see? Will you be catching public transport more than you used to or do you have your own way of minimising your dependence on petrol?

Ethanol in petrol

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Over the past four years ethanol has been making its way to our fuel distributors, being sold as E10. It is a colourless alcohol, the same as in alcoholic drinks and is manufactured from grain or sugar. The CSIRO has calculated that an E10 blend cuts overall greenhouse emissions by around 3 per cent. However it’s more costly than petrol to produce and requires special storage facilities. Testing shows that fuel consumption increases by 3-4 per cent when using an E10 blend.

10 per cent ethanol mixed with petrol should not affect the majority of vehicles on our roads. The motor industry’s website advises which cars can use E10, E5 or no ethanol at all. All vehicles manufactured before 1986 are recommended not to use ethanol.

Ethanol is currently rebated at the normal fuel excise, but the rebate will be phased out over 5 years from 2011*, by which time the industry is expected to have reduced the costs of production.

*please note: straight unleaded 91 octane petrol will now be phased out in NSW by 1 July 2012.  Vehicles not able to use ethanol will then use premium 95 octane petrol.

What’s your experience with E10? Is your car cheaper to run overall and has E10 had any effect – good or not so good – on your car’s performance or reliability?

LPG vs. Petrol

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So you’ve done all your calculations and decided to convert your car to LPG like over 700,000 other Australians. It sounds good in theory and the government rebate of $2000 is a great help. The fuel figures show your savings in dollars will have your conversion paid off within a year or two depending on your vehicle and the mileage done. But have you got all the facts?

Environmental impact

The environment is another winner in the change you have made by lowering greenhouse emissions. The Australian Greenhouse Office website states that the mass of CO2 gas released of the exhaust pipe by the burning of one litre of fuel is:

  • 2.3 kg for Petrol
  • 1.5 kg for LPG.

LPG = Less kilometres per litre

You can expect a 20-30 per cent increase in gas consumption over petrol per kilometre because the lower energy content of gas requires more to be burned in the engine compared with petrol.

Excise

There is no government excise until July 2011. But then the price of LPG will gradually rise over 5 years.

The excise will increase as follows:

  • 1 July 2011 initial excise of 2.5 cents per litre
  • 1 July 2012 excise increases to 5.0 cents per litre
  • 1 July 2013 excise increases to 7.5 cents per litre
  • 1 July 2014 excise increases to 10.0 cents per litre
  • 1 July 2015 excise increases to 12.5 cents per litre

In knowing all this, is or was a change to LPG worth it?

Do all the figures add up and, despite the cost savings, has your vehicle’s power and torque suffered? Is it less efficient when towing or carrying heavy loads, especially on long trips and going up hills?