Business News

Berlin calls crisis meeting as motorists refuse "eco" fuel

Mar 4, 2011, 18:26 GMT

Berlin - Chancellor Angela Merkel's government summoned the chiefs of the oil industry Friday to talks next week on why German motorists are refusing to fill their cars with a new 'eco-friendly' petrol.

A key refinery is running out of storage space for the new, 95- octane product, which is codenamed 'Super E10.'

At the same time, supplies are running low of 98-octane gasoline because of massive demand despite it costing more. Most of Germany's 15,000 filling stations only offer petrol in two octane grades.

Chief executives were told to report next Tuesday to the office of Economics Minister Rainer Bruederle. Three other ministers and automobile associations will also attend the meeting.

The crisis has made a shambles of government efforts to reduce oil imports and stimulate farming of energy crops.

E10 is so named because 10 per cent of the mix is ethanol from grain and sugar crops. The rest is refined petrol. So far about 7,000 petrol stations are offering it. The other main fuel is diesel.

Berlin officials blamed filling stations and oil companies for failing to 'educate' motorists about the new government-mandated product. Many motorists worry the new fuel will damage their engines.

Up to 10 per cent of cars that could safely burn the old Super are rated unsuitable for the new Super E10 and must instead be filled with 98-octane fuel, which only contains 5 per cent ethanol.

Manufacturers including Volkswagen have published lists on the internet of the models for which the new fuel is not suited.

Environmentalists have criticized E10, saying energy crops waste scarce farmland. Others say the result will be higher food prices.

Read more about Germany Energy



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