Biodiesel trial under way in bay of plenty

ExxonMobil Corp. is testing the sale of biodiesel fuel at the pump. The company began its trial in New Zealand’s (NZ) Bay of Plenty in April, using a blend of 95% ordinary mineral diesel and 5% biodiesel, which is produced in NZ using tallow, a by-product of meat processing. The move paves the way for the implementation of a recently approved mandate by the Environmental Risk Management Authority, which allows E85, an 85% ethanol blend mixed with 15% petrol, in cars.Meanwhile, the company’s Japanese unit ExxonMobil Y.K. has started offering a daily pricing option to its gas station operators, in lieu of the conventional weekly pricing system, aiming to minimize the differences between spot oil prices and wholesale rates. Daily pricing covers gasoline, kerosene and diesel oil. Wholesale prices are calculated daily using spot interdealer prices as the benchmark, then adding in transportation costs and fees for using the Exxon Mobil brand. The wholesale price calculated today will be passed on to gas stations the next day, and applied to deliveries the day after that. (March 18/30/ April 1/7, 2009)