20 March 2001

Consumer Watchdog to Look at Ethanol Claims

The Minister for Financial Services & Regulation, Joe Hockey, today asked the Australian Competition and Consumer Commission to examine allegations that wholesalers are mixing large amounts of ethanol into petrol and not alerting consumers to the change.

"I want to make sure consumers are not being mislead," the Minister said.

The ACCC will look at the ethanol issue for potential breaches of the consumer affairs provisions of the Trade Practices Act 1974.

A television report last night said that ethanol was being mixed with petrol and that, in some cases, ethanol made up nearly 20% of petrol being sold by some retailers in Sydney and Brisbane.

The TV report suggested that ethanol could also be damaging to car engines.

"Consumers have a right to know the extent their petrol is being mixed with ethanol, and they also have a right to know if their engines are at risk of being ruined."