Chiyoda starts bioethanol sales

Chiyoda Petroleum Co. plans to begin selling gasoline containing 3% bioethanol in October. Other companies started selling the product in April. The petroleum retailer, an affiliate of Nippon Oil Corp., will sell the bio-gasoline from a service station located near government offices in Kasumigaseki. Once a conversion of underground tanks is completed in October, Chiyoda Petroleum will start selling bio-gasoline to the general public. Because the bioethanol that Chiyoda Petroleum will use does not qualify for fiscal 2007 government subsidies, its product is expected to be priced several yen per liter higher than regular gasoline. However, sales volumes have been rising at the stations that have sold the blend since April, so Chiyoda Petroleum expects growth in downtown Tokyo, particularly sales to government vehicles and private companies concerned about the environment. (September 27, 2007)