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 Petroleum Refining and Petroleum Fuel Manufacturing industry. The only factor supporting the industry has been continued government subsidisation. A 2014 study by the Bureau of Resources and Energy Economics (BREE) suggested that without this 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 Analysis Chapter
Government subsidisation was the catalyst for the accelerated growth of the Ethanol Fuel Production industry during the 2000s. However, despite continued government support over the past five years, the industry’s performance has collapsed due to the slump in global crude oil prices, the relatively high production costs of locally distilled ethanol, and some consumer resistance to ethanol-blended fuel (EBF).
The world price of crude oil is projected to decline by an annualised 9.1% over the five years through 2015-16 (although this is largely due to the sharp fall in 2014-15). The fall in crude oil prices has significantly reduced the refining costs of petroleum products and put downward pressure of the pump price of petrol... purchase to read more