What is under Review?
We have determined a reasonable wholesale price for fuel ethanol from 1 January 2023 of 167.2 cents per litre (excluding GST).
You can find our previous price determinations here.
We are reviewing our methodology for setting wholesale ethanol prices and how often we update the price for future updates.
What are we seeking comment on?
- Should we determine the wholesale price for fuel ethanol quarterly, rather than yearly?
- In determining the wholesale price, should we calculate the excise component using the rate of excise in the month prior to the determination, rather than the 9-month average?
Submissions are due by 28 February 2023.
Who does this Review affect?
This review mainly affects fuel sellers and ethanol producers.
Under the Biofuels Act, fuel sellers must ensure that 6% of fuel sold is ethanol. This means that 60% of fuel sales are required to be E10 (which is made up of 10% ethanol, and 90% unleaded fuel).
Fuel sellers can be exempt from this requirement on various grounds. One of these is that the wholesale price of ethanol paid by retailers exceeds the price determined by IPART