Caltex addresses diesel concerns
BY NEIL MCDONALD | 3rd Mar 2006
The campaign is aimed at NSW, the ACT and much of Queensland. The move comes, in part, as a response to concerns by car importers and the Federal Chamber of Automotive Industries (FCAI) over delays at upgrading Caltex refineries in Brisbane and Sydney to deliver the new ultra-low sulphur (ULS) diesel.
ULS is required by many newer-generation turbo-diesels to operate efficiently.
Since January 1, the harmful sulphur content in diesel has been lowered to 50 parts per million from levels up to 500ppm, as recommended by the Fuel Quality Standards Act 2000.
Caltex Australia spokesman Frank Topham admitted the company was aware of the car industry’s concern about delays in upgrading its Sydney and Brisbane refineries and the fact that it had been granted a three-month waiver, from January 1, over the introduction of the ultra-low diesel.
As a result, some importers now face delays in launching new diesel models that must use ULS for peak performance. However, Mr Topham said he was unaware of an FCAI document on behalf of car companies requesting compensation over the lack of 50ppm diesel.
"I’ve never seen any issue of compensation raised," he said. "But our whole focus has been on making sure new customers for these new-generation diesels don’t have any problems at all in either understanding where to get the fuel or actually getting it.
"What we’ve been working on very hard with the affected manufacturers and the FCAI is getting a communications strategy established." Service stations will have brochures available and there will be an internet version and phone hotline for advice.
Mr Topham also said Caltex was aware of negative comments from the car industry suggesting that it had had plenty of time to institute the refinery upgrades in preparation for ULS fuel.
"We would defend our position by saying that the events which have caused the delay have been largely beyond our control.
"In hindsight, if we’d started early, then those difficulties, which have been experienced by a lot of projects around Australia, would not have had the impact on delaying us.
"But those are lessons. The delays have given us lessons which we’re going to take on board in terms of future projects." Mr Topham said Caltex had also sought an extension of its waiver, beyond March 31, but believed it would not be necessary to exercise it as the refinery upgrades were close to completion.
Caltex has been involved in talks with each manufacturer over ULS and many had expressed a "considerable level of concern" over the refinery delays, according to Mr Topham.
"It’s not a situation we would have wished to have happened. But given that it has, we’ve got to minimise the impact of it," he said.