Withdrawal of Maxol Bioethanol E85 from 1st January 2011
Maxol is proud to have pioneered the introduction of E85 in Ireland (Click here for Press Release). E85 is an environmentally friendly fuel consisting of 85% bioethanol and 15% petrol. Although it is a more expensive fuel to produce than unleaded petrol, Maxol, with the aid of the Irish Government’s excise duty derogation on bioethanol, has been able to market the fuel through a network of 28 of it service stations. A full list of these locations is shown below.
However, while biofuels continue to be heavily marketed in the motor fuel business in such places as the US, Sweden and Brazil, the Irish Government has decided not to continue the duty derogation on the bioethanol content of E85, thereby spelling the end of this product’s viability. When the full duty component is applied to the price of E85 at the pumps, this product becomes prohibitively expensive for motorists. Regrettably, the end of the duty derogation marks the end of the road for this environmentally friendly fuel in Ireland and E85 will be phased out of Maxol’s service stations from 1st January 2011, with site stocks expected to run out in early quarter 1.
How the end of the duty derogation i.e. the addition of duty to E85 affects its price.
The raw cost of the bio-ethanol is more expensive to produce than the base cost of petrol and also subject to significantly lower economies of scale in production and demand. Currently, however this is largely offset by the Government’s duty derogation of 44.27cent per litre on bioethanol based bio fuels. As discussed above, this derogation comes to an end on 31st December 2010 and were Maxol to continue selling this fuel its pump price would overnight increase by circa 53 cent per litre (i.e. 44.27 + VAT); an unsustainable price for a litre of motor fuel. This will, undoubtedly lead to the vast majority of flexifuel vehicle owners switching to unleaded petrol instead, with Maxol customers having the alternative of E5 Unleaded, which will continue to contain 5% Ethanol and be retailed at its usual competitive price.
What does this mean for current owners of flexi-fuel vehicles?
Fortunately all flexi fuel cars have always been able to run on regular unleaded petrol or E85, which means that their owners can continue to fuel their cars at any Maxol station without any mechanical adjustment or cost. Furthermore Maxol is one of the companies which has pioneered using 5% Ethanol as standard in its unleaded, which enables motorists to continue to do their bit for the environment. Further information on Maxol’s E5 unleaded petrol (i.e. unleaded containing up to 5% bioethanol) is available here.(click link)
How does the use of Bioethanol as a motor fuel help the environment?
The main environmental benefit is its CO2 reduction potential when seen from a well-to-wheel perspective. (CO2 is the main greenhouse gas responsible for global warming). Bioethanol is a renewable fuel from plants (such as cereals, sugar beet etc) or biomass (incl. waste wood) and these plants while growing extract CO2 from the atmosphere during photosynthesis.
E85 is currently available at the following Maxol Service Stations but will cease in early quarter 1 2011:
- Clarecastle, Ennis, Co. Clare - Tel. 065 6821110
- Carrigaline, Cork - Tel. 021-4371992
- Wilton, Cork - Tel. 021 4342392
- Lower Glanmire Road, Tivoli, Cork, Co. Cork - Tel. 021 4552775
- Mitchelstown, Co. Cork - Tel. 025 84355
- Burt, Co. Donegal - Tel. 071- 9156159
- Baldoyle, Co. Dublin - Tel. 01- 8324959
- Beach Road, Sandymount, Dublin 4 - Tel. 01 660 7462
- Navan Road, Dublin 7 - Tel. 01- 868 2865
- Cromwellsfort Road, Crumlin, Dublin 12 - Tel. 01 455 7985
- Richmond Road, Dublin 3 - Tel. 01 836 0536
- Sallynoggin, Co. Dublin - Tel. 01 285 8323
- Sandyford Road, Dundrum, Dublin 16 - Tel. 01 -295 6292
- Maynooth Road, Celbridge, Co. Kildare - Tel. 01-627 0598
- Maynooth, Co. Kildare - Tel. 628 6576
- Newbridge, Co. Kildare - Tel. 045-430340
- Portarlington, Co. Laois - Tel. 05786 43127
- Garryowen, Dublin Road, Limerick, Co. Limerick - Tel. 01 061 414305
- Avenue Road, Dundalk, Co. Louth - Tel. 042 9339013
- Castletown Road, Dundalk, Co. Louth - Tel. 042 9335338
- Ballymakenny Road, Drogheda, Co. Louth - Tel. 041 9831016
- Spencer Park, Castlebar, Co. Mayo - Tel. 094-9026308
- Flower Hill, Navan, Co. Meath - Tel. 046 90 21608
- Father Matthew Street, Tipperary Town - Tel. 062-31221
- Kingsmeadow, Cork Road, Waterford - Tel. 051 357100
- Dublin Road, Gorey, Co. Wexford - Tel. 055 21158
- Ardcavan, Castlebridge, Wexford Town - Tel. 053 44322
- Main Street, Blessington, Co. Wicklow - Tel. 045 858088
- Vevay Road, Bray, Co. Wicklow - Tel. 01 2866641