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This next item is of particular interest if you drive or are thinking of driving a petrol car. You may or not be aware that when petrol is manufactured, or whatever the correct expression is, it has to conform to British standards and for many years the standard blend of fuel in the UK has been known as E5.

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This means that petrol has to be blended with 5% Ethanol which cuts down greenhouse gas emissions. The downside is that it delivers 30% less power than petrol but with just 5% added the difference has hardly been noticeable. However, this is about to change because from March 2013 British Standard EN228 has allowed petrol companies to increase the ethanol content to 10%, known surprisingly as E10.

To date none seem to have adopted the new blend as it has been found to cause a problem in older cars. In the US they have investigated the differences the new blend makes to cars and found that there is a drop in economy of about 3-4% between E10 and pure petrol (E0).

In real terms, following an investigation by What Car, on a Dacia Sandero 89bhp, the drop in MPG meant a difference in fuel cost of £202 every 12,000 miles. A 98bhp Hyundai i30 had a 9.8% drop in economy between E0 and E10 amounting to an extra £16 per month. Hybrids performed a little better.

It is thought that 39% of UK road transport CO2 comes from petrol engines and Ethanol has been proposed as a quick fix to help to reduce this. The expected carbon saving is anticipated to be 58% but What Car tests have found that there is actually a slight increase in carbon emissions.

The general feel is that whilst the fuel companies won’t introduce E10 before the end of this year – it will come eventually. Before you start to panic the Society of Motor Manufacturers and Traders(SMMT) have said that 92.2% of all cars are OK with E10 and that cars built after 2002 should be in the clear but check the manual before filling up.

E5 will still be available so we will be back to the days of ‘Super’ grade and ‘Super Plus’ grade petrol. If a garage sells 3 million litres a year it must offer both grades, less than this and the site will need to decide which grade to offer. Retailers don’t have to identify E5 petrol however the Biofuel (labelling) Regulations state that pumps dispensing more than 5% Ethanol must clearly show it on the pumps so E10 will be clearly labelled.

Manufacturers have known about this for a few years so all new cars will be compatible with E10, yet another reason why you should lease a new car rather than HP a used car! By Graham Hill

Related articles

• New E10 Petrol ‘Reduces Fuel Efficiency’ (news.sky.com)

I guess with the cost of diesel so high it was inevitable that people would try to save money by buying dodgy fuel that has either been bought cheaply, as it was intended for use by farmers, and as a result it attracts less duty or it has been stolen from farms where fuel is less protected than filling stations.

Thinking of a change but unsure as to the best way to finance your car? Then you need a copy of my car finance book, Car Finance – A Simple Guide by Graham Hill. Click on the link below to buy the best car finance book on the market, available as a Kindle Book and Paper Back

According to HM Revenues and Customs the sale of illegal fuel is up by 48% and not just from ‘pop-up garages’ and ‘huckster sites’ but also regular filling stations. In the past it was easy enough to identify the dodgy fuel if it originated from a farm as it was dyed red. But to avoid detection the crooks have found a way to strip the red dye from the fuel using a concoction of chemicals.

This is all well and good but the chemicals they use can damage the engine. The damage is made difficult to detect as the effects of the chemicals can take months or even years to be noticed. HMRC has revealed that they found illegal fuel at 388 sites in 2012 compared to 262 in 2009/10.

Closed (Photo credit: Joe Dunckley)

Whilst is seems there has been a surge the HMRC believe that it has more to do with the detection rate rather than a substantial increase in use or theft of illegal fuel. You can draw your own conclusions, just be careful where you are buying your fuel from and what harm the fuel could be doing to your car. By Graham Hill

Related articles

• More garages caught selling illegal fuel (telegraph.feedsportal.com)

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As you can imagine, in order to produce my weekly newsletter and my blog I carry out a lot of research. The information I receive comes from a number of sources leaving me to decide on the accuracy before I report it. Most of the time I feel quite happy with the information that I have and when I recently reported on the rip off price of diesel in Read more »

Rip off Britain is still alive and well and currently living in the diesel fuel pumps! According to latest figures Britain now has the highest priced diesel in Europe even though the actual cost of the diesel before taxes is the lowest. In January the cost of diesel was 51.1 pence per litre (ppl), according to the National Statistics Office. In February it rose slightly Read more »

Warnings have been issued about the likely increase in the cost of fuel at the pumps. Of course we have the increase in VAT in January but the warning has come as a result of French firm Total putting their 500 service stations up for sale along with its supply contract to a further 300 independent outlets. At the same time Murco have also put their network of 200 retail outlets up for sale which means 10% of all the Read more »

Warnings have come out again from the AA who have reported a 6% increase in callouts for miss-fuelling during the first 6 months of 2010. It all seemed to have settled down last year as filling stations made sure that pumps were more clearly marked and manufacturers made it more obvious as to what fuel needed to be pumped into the tank. But for no apparent reason we have suddenly had this increase. The AA Read more »

As Europe attempts to run their cars on anything other than petrol or diesel including chip fat, wee and rapeseed oil, otherwise known as bio fuel, new evidence is emerging that it may not be as environmentally friendly as it was thought. Reuters put in a freedom of information request to the European Commission for information on bio fuel CO2 emissions and found that biofuels produced from rapeseed had an Read more »

We have such short memories! I remember the furore when petrol prices hit 119.7pence per litre 2 years ago. Fuel suppliers were challenged and emails flew around in all directions telling everyone to boycott the main oil companies in an attempt to force petrol suppliers to drop their prices. At the time oil prices were $147 per barrel but with exchange rates at about 2 dollars to the pound it put the price per barrel at Read more »

Even without the full increase in fuel duty we are seeing a constant increase in fuel cost. Petrol rose by 23% (21 pence per litre) last year whilst diesel increased by 13% (13 pence per litre) and we have already seen fuel increase by about 8 pence per litre this year. On average petrol increased every 2 weeks and as the increase was spread over the year it hasn’t led to serious discontent. But with fuel set to rise Read more »

This week I was going to open with an amazingly interesting piece about the Budget and the effect on the motorist and how we are going to have things a little easier than we had thought but that one was pretty much buggered 2 minutes after the Chancellor stood up. We’ve managed to get the fuel duty hike spread over the year and um er, that’s about it really. Oh no I think he mentioned something about Read more »