Wholesale price of 167.4 c/L for fuel ethanol from 1 July 2023

The Independent Pricing and Regulatory Tribunal (IPART) has determined a reasonable wholesale price for fuel ethanol from 1 July 2023 of 167.4 cents per litre.

We set the ethanol price based on what it would cost retailers if they bought wholesale ethanol from overseas.  It is based on a 9-month average of weekly import parity price estimates based on the lowest cost origin for ethanol from either the US or Brazil.

The July 2023 determined price of 167.4 cents per litre is 1 cent, or around 0.6%, lower than the determined price for the previous period of 168.4 cents per litre. This is mostly due to a fall in the mill-gate price and customs value duty. The customs duty was lower because the US has zero duty, and the USA was the lowest priced origin for wholesale ethanol for more of the Import Parity Price averaging period compared to last quarter (up from around 40% to around 50%).