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Ethanol-blended petrol one step closer to sale

Ethanol-blended petrol one step closer to sale

The Energy Efficiency and Conservation Authority (EECA) says the Government's decision not to apply excise tax to ethanol which will be blended into petrol removes the last potential barrier to the sale of ethanol-blended petrol in New Zealand.

Late last month the Environmental Risk Management Authority (ERMA) approved EECA's application for the manufacture, release, handling and use of petrol-ethanol blends not exceeding 10% ethanol by volume. This means that ethanol can be blended with petrol, up to a maximum of 10 percent, and sold in New Zealand service stations.

EECA Chief Executive Heather Staley says the ERMA approval removed the last regulatory barrier to the sale of the fuel, and the Government's decision will hopefully remove the financial uncertainty for oil companies.

"I hope that today's Cabinet decision will mean ethanol-blended petrol will go on sale in New Zealand before the end of the year. This will finally give New Zealand motorists a choice when filling up their cars.

"If ethanol-blended petrol goes on sale at the same price as ordinary petrol New Zealanders can make an environmental choice with no impact on their wallet.

"The ethanol that will be blended with petrol in New Zealand will be from renewable sources - making it the first renewable transport fuel to go on sale in New Zealand. This will be an important step forward for both renewable energy and the transport fuel industry and will help reduce net CO2 emissions," Ms Staley said.

EECA is working with oil companies to ensure information about the fuel will be provided to consumers at the point of sale and that the motor trade industry has the information they need to help their customers.

Ms Staley says EECA is improving energy choices. For more information about ethanol-blended petrol visit and look in the 'on the road' section.

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