Mandate causes rise in petrol costs

A significant number of Queensland motorists can expect to pay up to A$0.12 (US$0.10) per liter more for petrol if the government’s proposed ethanol mandate is introduced, according to experts. Under the proposed mandate, 5% of all regular unleaded petrol sold in Queensland must be ethanol blended E10 by January 2011. The “Against Ethanol Mandates Alliance” (AEMA) believes the mandate will reduce the availability of regular unleaded petrol, forcing consumers with incompatible vehicles and engines to purchase premium unleaded. Australian Lot Feeders’ Association President and alliance member Jim Cudmore says the major fuel retailers have already begun phasing out regular unleaded, with 34% less sold in the state since the State government announced the mandate in August 2006. (June 4, 2010)