The NSW Government and fuel companies are phasing out regular unleaded petrol in favour of E10 ethanol-blended fuel but an NRMA survey of 1300 motorists shows only one in four are aware of the policy.

The E10 policy will ensure that six per cent of fuel sold in NSW is E10 by July 2011, with more expensive Octane 95 and 98 unleaded fuels the only other options for petrol vehicles.

NRMA Hunter director Kyle Loades said with a percentage of locally-produced ethanol going into E10, the government and fuel companies believed there would be more control over fuel prices as the cost of crude oil rises.

Mr Loades said the NRMA endorsed the policy and was advocating for more policy promoting alternative fuels.

But he said the government and fuel companies needed to do more to let the public know about the changes.

“Pre-1986 vehicles are not suitable for E10, these cars will have to utilise premium fuels,” Mr Loades said.

“E10 is suited to most modern vehicles but (motorists should) check with the manufacturer.”

A statement from Newcastle MP Jodi McKay’s office said the govern-ment had decided to phase out unleaded petrol for a number of reasons.

“Environmentally, E10 will reduce exhaust particle emissions by around 33 per cent,” the statement said.

“E10 will also reduce our green-house gas emissions by about three to four per cent.”

The statement said once E10 had completely replaced unleaded petrol, fuel companies should be able to reduce its price by several cents a litre and E10 could be made locally, which would support regional jobs.

Classics left high and dry

While no pre-1986 vehicles are able to run on E10, some car enthusiasts and mechanics say the fuel is corrosive to all but the latest models of cars that have been built to suit ethanol-blended fuel.

Classic car collector and car show organiser Michael Saide said there were more than 70 car clubs in the Hunter alone and the phasing out of regular unleaded petrol would have a major impact on collectors.

“It corrodes injector and fuel lines.

“The more they are modified to suit fuels, the less they can be worth.”

NRMA Hunter director Kyle Loades said motorists should check with the vehicle manufacturer before using E10 and could use premium unlead-ed fuel if their vehicle was not suitable for E10.