Petrol, diesel and jet fuel comprise the large majority of fuel sales in Australia, with automotive liquefied petroleum gas (LPG), biofuels and other alternative fuels comprising a small yet important part of the market. However, petrol sales have remained relatively steady over recent years while sales of diesel and jet fuel have increased. LPG sales have also remained steady in recent years.
In 2010/11, petrol had a 46 per cent share of road transport fuel sales, diesel had 49 per cent and automotive LPG captured 5 per cent of sales.
Petrol
Petrol, or automotive gasoline, is a product derived from the distillation of crude oil. Its primary use is to power passenger motor vehicles and smaller commercial vehicles. The two most common types of petrol grades in Australia are unleaded petrol (ULP) and premium unleaded petrol (PULP), which consists of both 95 and 98 research octane number (RON) petrol.
In 2010/11, Australia consumed a total of 18,725 megalitres of automotive gasoline. Of this total, 61 per cent was ULP and 23 per cent was PULP. The remaining 16 per cent was made up of ethanol-blended fuels and small volumes of lead replacement petrol.
Diesel
Diesel, or automotive diesel oil, is a product derived from the distillation of crude oil. Diesel is one of the middle distillates, which include kerosene, aviation turbine fuel, gas oils and heating oil. These fuels are made from the same part of the crude oil barrel and are called 'middle distillates' reflecting their weight compared to heavier fuel oil and lighter petrol.
In 2010/11, Australia consumed a total of 20,054 megalitres of diesel, which represents an eight percent increase over the two years since 2008/09.
LPG
LPG is the generic name for mixtures of light, gaseous hydrocarbon gas, mainly propane (C3H8) and butane (C4H10). Automotive LPG can be straight propane or a mixture of propane and butane. LPG is a naturally-occurring gas that can be produced either through the production of crude oil and natural gas or during the petroleum refining process.
In 2010/11, Australia consumed a total of 2,022 megalitres of automotive LPG.
Jet fuel
Jet fuel or aviation turbine fuel is used for powering jet and turbo-prop engine aircraft and should not to be confused with Avgas, which is a high-octane aviation fuel used in aircraft that typically have piston and not turbine engines.
There are currently two main grades of jet fuel use in civil commercial aviation: Jet A-1 and Jet A, both are kerosene type fuels. There is another grade of jet fuel, Jet B which is a wide cut kerosene (a blend of gasoline and kerosene) but it is rarely used except in very cold climates. Jet A-1 is the grade of jet fuel used in Australia.
In 2010/11, Australia consumed a total of 7,067 ML of jet fuel, which represents a 12 percent increase over the two years since 2008/09.
Transport fuels standards
Transport fuels standards are an important part of the Australian Government's policy to facilitate the adoption of advanced, cleaner emission control technology to ensure the more effective operation of engines and to reduce air pollution.
The Australian Government's Fuel Quality Standards Act 2000
(the FQS Act) in concert with the Fuel Quality Standards Regulations 2001 and various fuel standard determinations set out the legal framework governing transport fuel standards in Australia. The FQS Act is administered by the Department of Environment, Water, Heritage and the Arts and detailed information concerning fuel standards is available at their Fuel Quality Standards webpage.
The Department of Resources, Energy and Tourism participates in the development of fuel standards through its membership of the Fuel Standards Consultative Committee. The Department's focus on the Committee is to ensure that fuel quality standards do not: jeopardise Australian industries' productive capacity; unnecessarily restrict competition or imports; and will facilitate investment in new technologies (from the refinery to automobile manufacturers).
ACCC monitoring of the Australian petroleum industry
On 8 December 2011, the Australian Competition and Consumer Commission (ACCC) released the latest edition of its annual report into the prices, costs and profits of unleaded petrol in Australia. The report can be found on the ACCC website.