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Cheap ethanol to fuel relief

Discussion in 'The Pub' started by pete, Aug 14, 2006.

  1. SERVICE stations will be offered a $20,000 carrot to introduce ethanol-laced fuel to their customers - a key part of a $1.6 billion bid to ease petrol pain.
    In a major announcement today, the government said up to $10,000 will be provided to service stations after the conversion is complete, and another $10,000 after ethanol blend fuel sales targets are reached.

    "The additional grant on reaching a sales target will provide a clear incentive for retailers to discount the price of E10 fuel," Prime Minister John Howard said.
    "Recipients of grants from the ethanol distribution program will be expected to sell ethanol blends at a discount and to display the price of ethanol blends alongside price information for other petroleum products."

    However, Mr Howard ruled out making ethanol a mandated part of the Australian petrol.

    "This government believes in consumer choice we are not persuaded to mandate the use of ethanol," he said.

    The ethanol plan will operate alongside other incentives to get motorists using LPG.

    Mr Howard said from today the government would contribute $1,000 towards the purchase cost of new factory-fitted LPG powered vehicles.

    The government will also provide a $2,000 grant to the cost of converting cars to LPG for private use.

    Mr Howard said LPG would, on the fuel bill for a six cylinder vehicle travelling 15,000 kilometres a year, save around $27 a week or $1,400 a year in fuel costs.
    ``The estimated cost of the LPG incentives I am announcing today is $677.1 million over the eight year life of the program," he said.

    "Taking into account revenue forgone, the total cost is more than $1.3 billion over eight years."

    Mr Howard also announced the government will spend an additional $123.5 million to extend and expand its renewable remote power generation program.

    Another $76.4 million will be spent to expand Geoscience Australia's current seismic acquisition program. This will focus on new frontier offshore areas to be chosen in consultation with industry.

    Almost $59 million will be spent identifying potential on-shore energy sources such as petroleum and geothermal energy.

    Industry Minister Ian Macfarlane has been asked to put up a proposal to cabinet to fund a program to make Australia a leader in gas-to-liquids and coal-to-liquids research.
    Mr Howard said Australia had benefited from high demand for energy sources.

    But he said Australians felt the pain of high petrol prices every time they filled up their cars at the bowser.

    "This is a difficult time for Australians faced with high petrol prices," he said.

    "And it is only appropriate that the benefits which accrue to Australia from our substantial resource base flow beyond a narrow part of our society."
  2. I find the LPG thing kind of funny. It's been said before the government is closely looking at LPG excise. So I guess when a heap of people convert to LPG and it's somewhat a even par with 'normal' petrol you can expect LPG to rise to make it roughly the same cost to use and the government will make back a lot (and more?) from their subsidies for LPG conversion.

    That's the cyncical me tho :grin:
  3. Yep I agree, as soon as demand goes up so will the price of LPG. So those poor suckers who spend 3k or so doin the conversion will be dudded. As for ethanol blends I know where I wont be buying my fuel from in future.
  4. undii your cynical self is right on the money.

    Back in 2003 Budget it was propsed to impart an excise on LPG at the same scale as petrol to be phased in from 2008 to 2011. This has since been pushed back and the phasing in of the excise will not occur until after 30 June 2011.
  5. Don't you worry about the excise farther down the track.

    Am I entitled to $2,000 subsidy if I convert my bike to LPG? :LOL:
  6. I've thought about an LPG bike! Take the fuel tank off and strap a few BBQ cylinders to the frame...dunno about ADR's though, and getting LPG mixers small enough for a bike is an issue too.
    I am thinking of a project for teh future, going to get a cheap 70's bike with a dead engine and put in a diesel of some sort, probably an aircooled generator engine.
    Should be fun.
    And Ethanol..go do some research on it. It uses as much energy to make it as you would use burning petrol, and costs about as much to make. Never mind it's affinity for water and poor power output, it's short shelf life or the damage it does to some rubbers......

    Regards, Andrew.
  7. Im going back a few years here, but didnt we have this grant thing offered when LPG first came out ?
  8. :?: and lpg bike? that would be original.
  9. :roll: More narrow-minded thinking from the Government. Sure in city areas servos might have to offer a discount on fuel to compete with non-ethanol blends. But in rural areas, where there might only be one petrol station, they can pocket the $20,000 bonus and continue to sell E10 for the same as normal unleaded. The only real reason ethanol reduces the cost of petrol is it's not taxed - simply dropping the tax on petrol (or calcualting GST before excise is added) would have exactly the same effect, and be a lot easier to implement.