In the race to reduce carbon emissions and meet climate targets, the UK government introduced E10 petrol as the new standard unleaded fuel in September 2021. Marketed as a cleaner, greener alternative to the previous E5 blend, E10 contains up to 10% renewable ethanol — a move hailed as a milestone in sustainable transport.
The Hidden Cost Of Going Green
When the UK government rolled out E10 petrol as the new standard unleaded fuel in September 2021, it was hailed as a major step toward reducing carbon emissions. But nearly four years on, motorists are feeling the pinch — and it’s not just about fuel economy. According to a study by the University of Warwick, the switch to E10 has added an average of 3.5p per litre to petrol prices.
That might sound minor, but for a typical family car with a 55-litre tank, it equates to an extra £1.93 per fill-up. According to This Is Money, over the course of a year, drivers covering the UK average of 7,400 miles are paying £28 more — and that’s just for petrol. Diesel users are hit even harder, with an estimated £48 annual increase.
What Is E10 Petrol?
E10 petrol contains 10% renewable ethanol, up from the 5% found in the previous E5 blend. The idea is simple: reduce reliance on fossil fuels and cut CO₂ emissions. The government claimed the move would slash emissions by 750,000 tonnes per year, equivalent to removing 350,000 cars from the road.
But while the environmental benefits are clear, the financial impact on drivers has been anything but negligible.
Efficiency Vs Expense
One of the key criticisms of E10 petrol is its lower energy content. Ethanol doesn’t pack the same punch as traditional petrol, meaning engines run less efficiently. The AA estimated that fuel consumption would rise by 1.6% purely due to the switch. That means more frequent trips to the pump — and more money out of your pocket.
Research by GoCompare found that E10 petrol is 2.3% less efficient than E5, leading to an estimated £300 increase in annual fuel bills for some drivers. And while the government initially claimed the change wouldn’t affect pump prices, the reality has proven otherwise.
Why Prices Are Rising
According to This Is Money, The University of Warwick’s analysis points to three main drivers behind the price hike:
- The increase in bioethanol content from 5% to 10%.
- Rising ethanol prices, which peaked at 130p per litre in late 2021 — nearly triple the cost of fossil petrol.
- Retailers passing on costs to consumers using “rocket and feather” tactics — quick to raise prices, slow to lower them.
The volatility of biofuel pricing has made budgeting difficult for drivers, especially during periods of high inflation.
Compatibility Concerns
Not all vehicles are compatible with E10 petrol. It’s estimated that 600,000 to 700,000 older petrol cars on UK roads can’t safely use the fuel. Owners of these vehicles are forced to buy super unleaded E5, which is significantly more expensive — often by 15p per litre or more, says The Argus.
Classic car enthusiasts and drivers of older models have voiced concerns about engine damage, with issues ranging from corroded fuel lines to degraded carburettors.
Is It Worth it?
The government defends the switch by citing the social cost of carbon — a metric that values the environmental benefit of reduced emissions. For every £1 cost to consumers, the use of biofuel is said to save £5.70 in carbon damage, says This Is Money.
Steve Gooding of the RAC Foundation acknowledges the trade-off: “While biofuels may have pushed up prices for drivers, the environmental benefits have far outweighed the costs.”
Final Thoughts
The shift to E10 petrol is a textbook case of good intentions meeting real-world consequences. Yes, it’s greener. Yes, it’s aligned with net-zero goals. But for millions of drivers, it’s also more expensive, less efficient, and — in some cases — incompatible.
As fuel prices continue to fluctuate, and with electric vehicles still out of reach for many, the debate over E10’s true cost is far from over.
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