UK drivers fill up their car with free biofuel

Motorists were stuck in kilometre-long queues of bumper-to-bumper traffic on Parramatta Rd as many tried to cash in on Woolworths' "education campaign" promoting use of the bio-fuel.

It followed an Independent Pricing and Regulatory Tribunal report that found drivers were unwilling to pump the E10 blend into their cars.

By law, fuel companies must ensure 6 % of all petrol sales are ethanol - but drivers are shunning the bio-fuel in preference for regular or premium unleaded, leaving the fuel retailers at risk of missing their target. Many drivers have failed to make the switch to E10 because of popular - and largely unsubstantiated - claims that bio-fuel damages vehicle engines and does not last as long in the tank.

"Those claims are "myths", according to NRMA motoring and services director Graham Blight. "I know a lot of mechanics have come out and said it is no good and it will hurt your car but these are just myths," he said.

"It is perfectly fine to use E10 in your car."

Acting Premier Andrew Stoner said yesterday E10 was also a cheaper alternative at the bowser for struggling motorists and was better for the environment.

"When you think about V8 Supercars using 100 % ethanol, I think that serves as a vote of confidence for the product," he said. "There is no issue in terms of supply in NSW, but on the demand side we would like greater market acceptance."

IPART also warned ethanol may push up NSW petrol prices because there is only one producer - Manildra.

Customers loving the free biofuel

Customers were loving the free petrol at the Burwood service station yesterday.

Gina Rees, of Redfern, said she filled up with E10 in both her work and private cars. "It is generally cheaper than unleaded and great for the environment," she said.

Georges Hall teacher Michelle Elchar said she was a bit more reluctant to use the bio-fuel and alternates with unleaded. "I just bought a new car and I was told it is not good to use E10 all the time because it wrecks the car," she said. "That is why I tend to switch between unleaded and E10."

The service station filled about 700 cars during the hour-long promotion.

Despite its ironclad belief in the benefits of ethanol fuel, the state government this year backed away from a previous mandate to ensure all unleaded contained 10 % ethanol-blended fuel. It maintained that while it was important to support an emerging biofuel industry that was good for the environment and would create hundreds of jobs, an appetite simply was not there from struggling families.

"Motorists pay enough for petrol and I am not going to force people into buying more expensive petrol," Premier Barry O'Farrell said.