Motorists want unleaded as E10 quality questioned

LOCAL fuel companies say the government’s shift to ethanol based fuel is playing right into their hands as motorists rebel against its quality.

One operator told the Post his sales have increased 25 per cent since Caltex Woolworths shifted to the bio-fuel, commonly known as E10 (unleaded petrol with 10pc ethanol).

The Clinton St outlet, like many Caltex and Coles operated Shell stations, only makes premium unleaded and not regular unleaded available to customers. The trend is angering some motorists. They argue with the state government reversing its decision not to make regular unleaded petrol available after July 1, service stations should be supplying the full range of fuel.

It’s forcing those who prefer regular unleaded petrol to pay more for the premium quality at these outlets. In Goulburn at least, operators still supplying all types are smiling.

Owner/manager of Mobil Lagoon St, Glen Couthino, said unleaded petrol sales had increased in recent time.

“We sell more unleaded than E10 and that’s always been the case,” he told the

“I wouldn’t have changed over at all to ethanol unless the government had forced us.”

But as an independent, he has a little more flexibility to choose. Others are at fuel companies’ mercy, he says. Mr Couthino also operates two Caltex sites at Bega and Cooma. Bega had introduced E10 after the state government mandated a 10 per cent ethanol target for fuel companies last year. He said this outlet lost sales as a result, whereas Cooma remained stable.

“If I’d had a choice, I would have held out (at Bega),” Mr Couthino said.

“Wherever unleaded petrol is sold, people will go. In Goulburn, (the sale of E10) has narrowed the market a bit but I love it. It’s a hard job matching the majors so when we get an advantage, we grab whatever we can.”

His personal view was that E10 was a “very corrosive fuel,” which if used in older cars (1980s and 1990s) and indeed some new cars, could destroy rubber seals, gaskets and tanks.

Mr Couthino said while oil companies and distributors had to meet a six per cent ethanol target, it was not sustainable as crops to produce the bio-fuel were not matching demand. Liberty service station console operator, Richard Khan agreed.

The independent sells the full range of fuel. While E10 is cheaper, he says people prefer unleaded.

“People come here especially for it,” he told the

“When Woolies stopped selling unleaded, customers came up here. Our business has gone up 25pc.”

People still wanted the fuel for lawnmowers, whipper-snippers and older cars. Owner/manager of the independent Bradfordville Service Station Kim Brown is adamant he won’t be changing to E10. He also operates a mechanics business and sees its effect on engines.

“The quality is not as good as unleaded. It’s a cheaper version the greenies brought in,” Mr Brown said.

“Fuel consumption is also better on straight unleaded.”

He said he was not a large seller, but people came especially for that fuel type. Manager of the independent South Goulburn Shell, Mandy Connor said many people had approached her outside of work asking whether the outlet still supplied unleaded fuel.

“It’s a popular fuel and a lot of people prefer it. You have to give people choice,” she said.

Caltex justifies its E10 push, saying the state still has a 6pc ethanol target in place, which it has to meet. (See separate story)

But earlier this year, when reversing his unleaded petrol ban, Premier Barry O’Farrell said: “The big oil companies are running a scare campaign about ethanol because they want to push customers into the more expensive premium petrol where the margins are higher.”

For more articles in our comprehensive report, and the related editorial, please see the print edition of Friday’s Goulburn Post.

Follow @LouThrower