Bob Katter Proposes Increased Ethanol Fuel Usage
The federal MP is pushing to boost domestic biofuel production and lift mandated ethanol levels in Australian petrol.
Updated on Oct. 20, 2026 in Auto Parts
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Should the Australian government mandate higher levels of domestic ethanol in vehicle fuel?
Federal MP Bob Katter has proposed a plan to increase domestic ethanol production and fuel usage across Australia. The initiative aims to enhance fuel security and generate regional jobs by shifting away from reliance on imported motor vehicles.
Why it matters
Proponents claim that ethanol-blended fuels provide superior combustion and lower harmful emissions. Supporters also argue that bolstering domestic biofuel production strengthens national fuel security.
E10 fuel comprises 10 per cent ethanol and 90 per cent petrol, while E85 consists of 85 per cent ethanol and 15 per cent petrol. Additionally, 52 per cent of cars sold in Australia in 2026 originated from China, compared to 62 per cent built domestically in the 1980s.
The players
Bob Katter
He is a federal MP representing the electorate of Kennedy in Queensland.
Morris Iemma
He is a former Premier of New South Wales who has previously supported biofuel initiatives.
The details
Ethanol-blended fuel is manufactured by fermenting grains and sugars before mixing the product with petrol. Most standard petrol vehicles require substantial modifications to operate effectively on high-concentration ethanol fuels like E85.
Timeline
1980s: 62 per cent of cars were built in Australia.
2007: New South Wales introduced a 2 per cent ethanol mandate.
2008: Morris Iemma publicly commented on biofuel benefits.
2021: Data collection year for New South Wales lung disease deaths.
2026: Minimum ethanol level in New South Wales reached 6 per cent.
Roadmap
The push for higher ethanol usage reflects a broader desire to reclaim domestic industrial capacity as the market shifts toward imported vehicles. By increasing reliance on local biofuel production, proponents seek to reposition Australia against the dominance of Chinese vehicle imports.
Drivers may need to check their vehicle specifications, as most petrol engines require significant modifications to run on high-concentration ethanol fuels like E85. These changes could alter maintenance expectations for car owners across the country.
The takeaway
Transitioning to higher ethanol blends involves weighing potential emission benefits against the technical requirements of current vehicle fleets. Residents should monitor future policy shifts that could impact fuel availability and engine performance standards.
Further reading
For more context on vehicle fueling requirements, visit Australia Auto Parts.
Source note: This article includes information reported by Drive.
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Should the Australian government mandate higher levels of domestic ethanol in vehicle fuel?
