7 November 2002

Drivers are prepared to pay for purer petrol

Petrol stations should declare how much ethanol they put in petrol, say an overwhelming number of Sydney car drivers, according to research released today. Three quarters of drivers are aware of the Ethanol dilution issue, and nearly nine-in-ten drivers feel that petrol stations need to put their cards on the tables with regards to the ethanol that they are adding to petrol.

According to a representative survey of 300 people across Sydney conducted by Ingenuity Research at the end of October, 76% of drivers are aware that some petrol contains ethanol, and 87% felt that petrol stations should tell them how much ethanol they put in the petrol.

The survey also asked if people would be prepared to pay more for petrol with less ethanol in it, or would prefer to buy discounted petrol with some ethanol. The results show that most drivers are prepared to pay a premium for less diluted or undiluted petrol. Young people aged 18 to 24 were the most likely to choose cheaper diluted petrol, while less than one-in-ten older people wanted cut-price petrol with ethanol. Women were also more inclined to pay a little more for a higher grade fuel.

While the highest income earners ($80,000 and over per annum) were the most willing to pay more for petrol with less ethanol in it, average income earners were slightly less concerned about the presence of ethanol than the lower income earners. Very high income earners were also the most likely to feel that petrol stations should declare the amount of ethanol that they are putting in their petrol, with 97% of those earning $80,000 or more per annum saying that petrol stations should be obliged to declare exactly what is coming out of the bowser.

From the petrol company's point of view, this survey shows that there is a market for premium petrol, and normal petrol without ethanol (or with a very low level of dilution) and diluted discount petrol.

How This Poll Was Conducted

This topic was included as part of a survey of 300 people throughout Sydney conducted between the 21st and 23rd October 2002 by telephone. The sample was selected randomly from the Sydney White Pages, and the survey was conducted in accordance with strict standards set-out by the industry watchdog, Interviewer Quality Control Australia.

The above information is copyright to McNair Ingenuity Research and may be reproduced or quoted provided that it is clearly acknowledged to McNair Ingenuity Research.

For more information contact Matt Balogh ph 02 9966 9133.

You can learn more about McNair Ingenuity Research by visiting www.mcnairingenuity.com
or calling Client Services Director Matt Balogh on 02 9966 9133

McNair Ingenuity Research Pty Ltd ACN. 096 437 991 Level 4, 270 Pacific Highway, Crows Nest, NSW, 2065 Phone: +61 2 9966 9133 Fax: +61 2 9966 9277 www.mcnairingenuity.com