Graph of the Day: Australia’s dirty diesel boom

A slightly surprising takeaway from the latest pitt&sherry Cedex report is that total sales of light vehicle fuels in Australia, and hence emissions from their use, have been declining steadily for the past year.

As the report’s author Hugh Saddler notes, “this overall reduction in consumption of petroleum fuels for road transport is potentially very significant” and, should it continue, could take on a similar significance to the much talked about electricity demand reduction.

But the same can’t be said for Australia’s consumption of diesel – petrol’s more emissions intensive (and often more costly) cousin.

As illustrated in the graphs below, Australia’s diesel fuel habit has been steadily booming, compared to other petroleum fuels; a trend driven by particularly strong growth in the WA and Northern Territory markets, where diesel is used for mining, industry, and electricity generation at remote locations, as well as for road transport (light vehicles, buses, road transport fleets).

Correspondingly, emissions from bulk diesel sales are far and away higher (and rising) than those of any other petroleum fuels, even those used by the aviation sector.

Screen Shot 2014-04-03 at 12.24.38 PM

Retail sales of diesel for light vehicles are also soaring ahead, especially when compared to those of petrol and LPG, which have both been in steady decline. And it’s because of this discrepancy, says Saddler, that the 0.9 per cent reduction in petroleum fuel emissions recorded in Australia over the past 12 months is actually less than the reduction in total volume (1.1%). Screen Shot 2014-04-03 at 12.24.36 PM

The graph on the right, meanwhile, shows where Australia’s booming thirst for diesel is coming from. And it helps to explain why organisations like the Australian Renewable Energy Agency are so focused on using their resources to drive the uptake of renewable energy technologies like portable solar generators in off-grid locations, where all this heavy emitting and costly diesel is currently used.

Comments

7 responses to “Graph of the Day: Australia’s dirty diesel boom”

  1. Pedro Avatar
    Pedro

    If the government make mining companies pay the diesel excise that should do wonders to driving down consumption and increase tax revenue. A much better idea than raising GST.

    1. Alen Avatar
      Alen

      Why is there a need to stil heavily subsidise diesel fuel for mining operations? These companies make huge profits, so I question the logic in providing them with additional financial aid. The tax payer is in essence funding and improving their profit margins.

      1. Pedro Avatar
        Pedro

        That’s really the question to ask. Mining companies are subsidized about $2 billion/year by just not paying the diesel exise.

        1. juxx0r Avatar
          juxx0r

          So are fish mining companies and wheat mining companies and sheep mining companies. It’s just take take take with these primary industries. $0.40/kWh is too cheap, we should make it $0.60/kWh till they’re all broke and we’re all starving.

          1. Pedro Avatar
            Pedro

            It would be interesting to find out what proportion fuel is as an input cost to an operation. I personally do not mind paying what it costs for goods. It is better than getting artificially cheap products and then paying more tax. Your assumption that a rising energy cost will send business broke and we will starve is not realistic. All energy prices have gone up significantly over the past 5 years and yet no one is starving.

          2. juxx0r Avatar
            juxx0r

            I have two projects on my desk at the moment, fuel inputs are 120-300% of the labour cost. That’s all the detail i can give you.

            I’m neither for nor against the removal of the fuel subsidy; however i’m sick of the mining bashing that goes on around here. The fuel subsidy is for all primary producers from tree farms to fishermen to hemp to biofuel farmers to mines and quarries. Why single out the mines?

          3. Pedro Avatar
            Pedro

            Because mining companies are the least in need of tax payer subsidies. If you can not mine it profitably without subsidies then it should be left in the ground until mining a resource becomes profitable.

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