INSULT: BP, Caltex to discount ethanol blend

Watchdog comment
Selling E10 ethanol fuel at 3 cents less than pure petrol is profiteering by the oil companies.

The cost of ethanol production is about $1.10 / US gallon - around 40 cents a litre and there is no excise on ethanol at this time.

Because ethanol contains less energy than petrol, the reduced fuel economy will make the E10 blend dearer to use than petrol.

Three cents a litre saving is an insult to Australian motorists. That is just a 2% reduction for the 10% ethanol content.

If that is the best we can expect, the E10 blend is a waste of time. Bring on E85 and see what that can save us.