IPART has determined a reasonable wholesale price for fuel ethanol from 1 January 2022 to 31 December 2022 of 149.3 c/L. If producers sell wholesale ethanol for more than this, then fuel retailers can apply for an exemption from meeting the ethanol mandate. The ethanol mandate requires retailers to ensure that 6% of all fuel they sell is ethanol.
We set the ethanol price based on what it would cost retailers if they had to buy ethanol from overseas. The 2022 price is around 30% higher than the 2021 price of 114.2 c/L. The increase is being driven by the rising demand for fuel ethanol globally as economies recover from COVID-19.
Extracted in full from: https://edm.ipart.nsw.gov.au/t/ViewEmail/t/BDEB1104B79067562540EF23F30FEDED/7BE2D9273280B42EB3138EAD4DECE712?alternativeLink=False