Industry Analysis & Industry Trends
The Ethanol Fuel Production industry is running on fumes. The industry has struggled to maintain market share over the past five years as the cost competitiveness of ethanol-blended fuel (EBF) has been squeezed by lower world crude oil prices and falling demand from the local Petroleum Refining and Petroleum Fuel Manufacturing industry. Continued government subsidisation has been the principal factor supporting the industry. In 2014, Bureau of Resources and Energy Economics (now Office of the Chief Economist) suggested that without government assistance, the industry would collapse as it is otherwise economically unviable to produce ethanol as a substitute for petrol in Australia... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The industry is considered to be in a declining phase of its economic life cycle, as ethanol-blending fuels (EBF) struggle to gain traction with the consumer and local manufacturers remain heavily reliant on government support to survive.
The introduction of the Ethanol Production Grants Program in 2002 supported a period of accelerated industry expansion through to a record cyclical peak in sales during 2010-11. The steady flow of subsidies to compensate the industry for the imposition of fuel excise enabled the local manufacturers to compete with traditional petroleum and diesel products despite having a far higher unit cost structure... purchase to read more