Caltex to discount all E10 petrol by 3 cents
August 10, 2006
Caltex announced today it has put in place pricing arrangements for
all its E10 Unleaded petrol to be sold at 3 cents per litre (cpl)
less than regular unleaded petrol.
There are currently 41 sites
Caltex's E10 Unleaded in Queensland and New South Wales under the
Caltex, Ampol and Bogas brands. More than 100 sites are targeted to
be selling E10 by the end of this year.
"From today, Caltex company-operated service stations that supply
E10 Unleaded will sell it for 3 cents per litre less than regular
unleaded petrol," said Caltex Managing Director Des King.
"The pricing decision is part of Caltex's strategy to meet its
annual biofuels supply targets. These targets have been committed
to the Australian Government as part of its industry action plan
for biofuels. The decision also recognises the concerns of
motorists about current petrol prices driven up by record high
world oil prices."
"Caltex is also selling E10 Unleaded to its resellers - its
wholesale fuel distributors - at a wholesale price 3 cents per
litre less than regular unleaded petrol, so they can discount E10
Unleaded to their Caltex, Ampol and Bogas branded and other service
station customers," Caltex General Manager Marketing Mark Burrowes
"For some resellers, E10 Unleaded must be trucked from more distant
terminals than for unleaded petrol, incurring additional freight
costs. The amount of discount passed on therefore may have to take
into account these additional freight costs."
"Caltex is also discounting the wholesale price of E10 Unleaded by
3 cents per litre to its franchised service stations, so they are
able to set an E10 Unleaded price at a discount to regular unleaded
"Franchisees are solely responsible for setting their own pump
prices but the highly competitive petrol market should see the
lower wholesale price passed on to motorists.
"Price support arrangements for franchisees will ensure the 3 cents
per litre discount can continue to be provided even when unleaded
petrol prices in major metropolitan areas are heavily
"Caltex E10 Unleaded is being supplied from Caltex terminals in
Newcastle and Cairns. Investments in tanks and other facilities at
Caltex terminals are being planned, together with other
terminalling arrangements. These additional supply points will help
reduce freight costs."
E10 Unleaded is a blend of 10 percent ethanol in regular unleaded
petrol, which meets the national fuel quality standard. It is
suitable for use in most new vehicles and many older
Caltex has been supplying E10 Unleaded petrol since 1996 through
one of its resellers in NSW. E10 Unleaded was launched under the
Caltex and Ampol brands in Queensland in 2003. Caltex independent
and company-owned resellers have taken the lead in developing the
E10 Unleaded market. Depending on the service station, ethanol used
in E10 Unleaded is derived from either sugar cane or wheat.
Group Manager Corporate Affairs
Phone: 02 9250 5224, pager: 02 9214 1146