BP, Caltex to discount ethanol blend.


Fuel companies BP and Caltex have announced they are discounting their ethanol-blend unleaded petrol by three cents a litre from today.
Both companies market E10, which is a 10 per cent ethanol-blend.
Caltex managing director Des King says the decision is part of the company's strategy to meet biofuel targets and help motorists with high petrol prices.
There are 41 sites selling Caltex E10 in Queensland and New South Wales.
The discount will also be passed on to franchised service stations who set their own pump prices.
Caltex says the discount will be available to any city sites it adds to its E10 network in the future.
An independent fuel watchdog says the companies can afford to give the discount.
Fueltrac's Geoff Trotter says the Federal Government does not charge excise on ethanol, so the companies can afford to discount the petrol by 4.2 cents a litre.
"It seems to be better than their current strategy of pricing E10 at the same as unleaded which was a complete rort given that they were pocketing that difference in the cost price," he said.
"But you know they've been less than honest in terms of this price because they're not passing on the full benefit to the motorists."
He says the full reduction would help drivers.
"Four cents I think would be a of substantial assistance to most motorists given that that's the level that Woolworths and Coles pass on only if you buy $30 worth of groceries," he said.
"So if you don't have to spend your groceries and potentially get ripped off on them and you can save four cents on the fuel then I would have thought that that would have been a pretty attractive arrangement for most people."
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