G. Fuel Types (FAQ)
I. Premium fuels
1) What premium fuels are available in WA and why are they 'premium'?
2) What is 98RON?
3) What does RON mean?
4) Where is 98RON available?
II. Diesel
5) Why is the price of diesel often higher than the price of petrol?
6) Why does the price on diesel only seem to go up, while petrol prices go down?
7) Why doesn’t the priceboard show diesel prices?
III. LPG
8) Where is LPG available from? Regional availability (selling and conversion)
9) Why does LPG cost so much in the country?
10) Why is LPG so expensive to buy in WA if we sell it to overseas for only a few cents per litre?
11) How much does it cost to convert my car to LPG?
12) Are there any taxes on LPG?
IV. Biofuel
13) What are biofuels?
14) Are biofuels being sold in WA?
15) Can I use biofuels in my car?
V. Ethanol
16) What is ethanol?
17) Is ethanol a biofuel?
18) Is there any ethanol in WA's fuel?
19) Are there any requirements to label fuel with ethanol?
20) Can I use ethanol in my car?
Back to FAQ main page.
I. Premium fuels
1) What premium fuels are available in WA and why are they 'premium'?
Click here for more information on premium fuels .
2) What is 98RON?
98RON is a high-octane unleaded fuel that maximizes engine power and performance, as well as producing less pollution.
3) What does RON mean?
Research Octane Number (RON) is a measure of a fuel's compression performance and the RON rating given translates into the amount of engine power. RON requirements vary according to engine type. A knocking noise can occur in an engine when there is a mismatch between the fuel characteristics and the engine's design, particularly its compression ratio, resulting in pre-ignition (also known as 'pinging').
Many imported cars, and particularly those with turbochargers, are manufactured to run on premium unleaded petrol. Selecting fuel with the correct RON for your engine will prevent the knocking fuel effect caused when the fuel combusts in the compression chamber too early.
4) Where is 98RON available?
Most fuel retailers sell 98 RON fuel in Western Australia. To find out where you can purchase 98 RON do a ‘Quick Search’ for 98 RON in your area.
II. Diesel
5) Why is the price of diesel often higher than the price of petrol?
Diesel may require less crude oil per litre but it is not a 'waste' product. Commonwealth Fuel Quality Standards for lower sulphur diesel require a highly complex refining process. Wholesale prices for diesel (and other fuel products) are also based on an import parity system, not solely the cost of production. FuelWatch publishes the current benchmark prices for diesel, which are the best indicator of Australian retail prices for diesel.
6) Why does the price of diesel stay the same, while petrol prices go down?
While the retail prices of both diesel and ULP track international prices, ULP is a much more competitive market. This means that in the short-term, the price of ULP in metropolitan areas is subject to a regular price cycle. Diesel prices do not follow a cycle, so are more stable. During a petrol price cycle, the difference between ULP and diesel is subject to wide variation. Perth diesel prices are generally higher than Perth ULP prices, due to the much smaller, and less competitive, market.
7) Why doesn’t the priceboard show diesel prices?
Only regional retailers within FuelWatch boundaries must display prices for their fuel products on price boards. If they sell two or fewer products, they must show the prices for these, if they sell three or more products, they need to display at least three prices. Additionally, if ULP or LPG are amongst the products they sell, they must show the prices for those fuels.
Most metropolitan retailers use price boards as a form of advertising to passing traffic but this is not a requirement by law. However, any price they do display must be correct. FuelWatch encourages motorists to check the prices before they buy, by becoming an email subscriber, visiting the FuelWatch website, or using the 24 hour automated phone service, rather than going out of their way to check prices on signboards.
III. LPG
8) Where is LPG available from? Regional availability (selling and conversion)?
To find out where you can purchase LPG do a ‘Quick Search’ for LPG in your area. LPG Australia lists the details for areas outside of FuelWatch boundaries, however we suggest you always contact sites directly if you are travelling to remote areas.
9) Why does LPG cost so much in the country?
LPG in WA is priced using Import Parity Principles. The Saudi Arabian Contract Price is used as the base marker for setting WA prices as they are our nearest major regional producer.
There are a number of factors that contribute towards higher country LPG prices including:
- lower sales volumes and drop sizes,
- higher freight costs,
- lower levels of non-fuel revenue,
- higher maintenance costs,
- higher per unit operating costs and
- lower levels of competition.
Due to its unique chemical properties, LPG must be stored in a highly compressed form. This results in the need for special tanks and storage equipment, as well as pressurised tankers to transport it. This form of transportation is more expensive than for regular fuel types and therefore the cost of transport (relative to petrol) increases the further it is from the metropolitan area.
10) Why is LPG so expensive to buy in WA if we sell it to overseas for only a few cents per litre?
There is a common misconception that wholesale buyers - either overseas or domestic - are able to purchase LPG autogas for only a few cents per litre. However, the Department of Industry and Resources states that Australia exports LPG to Japan and other countries at ,or above, the Saudi contract price. Some large buyers may be able to gain discounts on the freight components and similar charges due to the volume of fuel bought directly from bulk storage. More information is available from the Department of Resources & Energy and Tourism.
11) How much does it cost to convert my car to LPG?
The WA subsidy scheme finished on 30 June 2009. Please visit The Department of Planning and Infrastructure for futher information. Information about the Federal subsidy scheme is available from the AusIndustry website.
12) Are there any taxes on LPG?
Currently there is no excise applied on LPG, however this will change from July 2011. The LPG excise will be introduced in increments, taking it to a total of 12.5 cpl by July 2015.
IV. Biofuel
13) What are biofuels?
Biofuels derive from recently living organisms or their metabolic by-products. It is by definition renewable and may include wood and wood waste, dried municipal waste (excluding plastics) and some agricultural waste products. For more information please visit WA Department of Agriculture and Food.
Biofuels such as biodiesel, ethanol and methanol can be liquid or gaseous. These biofuels can be used directly as a transport fuel, or can be included as a component of more common fuels e.g, E10, which is ten percent ethanol, and 90 percent petrol.
14) Are biofuels being sold in WA?
Currently only a biodiesel blend (B20) is being sold in WA – there are no ethanol blends sold within FuelWatch boundaries. There are strict labelling requirements for selling biofuels. To find out where you can purchase B20, do a ‘Quick Search’ for B20 in your area. As of 1 March 2009, under federal legislation, diesel can contain up to 5% biodiesel without a labelling requirement.
15) Can I use biofuels in my car?
We strongly encourage you to consult your owner’s manual or dealership before using biofuels, to ensure they are suitable for your vehicle.
V. Ethanol
16) What is ethanol?
Ethanol is made from natural renewable sources and can be blended with petroleum based unleaded fuels. More information about ethanol is available from WA Agriculture and Food.
17) Is ethanol a biofuel?
Ethanol, bio-deisel and methanol are all biofuels.
18) Is there any ethanol in WA's fuel?
At this stage, there is no ethanol-blended fuel for sale at service stations in WA. There are strict labelling requirements for retailers who sell ethanol-blended fuels, so that consumers know whether they are purchasing an ethanol-blended fuel or not. The Federal Minister for the Environment and Heritage announced that the Government would set a 10% limit for the blend of ethanol in petrol as of 1 July 2003.
19) Are there any requirements to label fuel with ethanol?
Currently, there is no ethanol blended petrol sold in Western Australia within FuelWatch boundaries. However, if there was, the bowser must be clearly labelled. The labelling standard applies to any petrol-ethanol blend that contains more than 1% ethanol. For more information about the labelling requirements visit the Department of Environment’s Ethanol Labelling Standard.
20) Can I use ethanol in my car?
Please consult your owner’s manual or dealership before using ethanol-blended fuel. Some manufacturers still advise against the use of these fuels and whilst, in Australia at least, the blends are only between 2 percent and 10 percent, you may not be covered by warranty if you’re found to be in breach of manufacturer’s guidelines.
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