Diesel in demand

Diesel's winning formula

Giant beast hungry for diesel – a huge dump truck dwarfs a Caltex tanker at the Ashton coal mine at Singleton, New South Wales. The mining boom is pushing up demand for diesel.

Diesel's winning formula

Caltex's diesel sales grew by almost nine per cent in the six months ending 30 June this year. Growth in diesel car sales in Australia over the same period was an astonishing 180 per cent.

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From the Managing Director

Des King, Caltex Managing Director

One of the biggest changes under way in the fuels market is the quiet revolution in diesel. We expect Australian demand for diesel to grow around 4 percent annually over the next 10 years – in contrast to petrol, where total national demand is expected to be flat.

Caltex is doing a lot to ensure that Australia's growing thirst for diesel is met. This includes increasing diesel production and making significant investments in facilities to manufacture, ship and store more.

We are producing more diesel and it is cleaner. In 2005 Caltex produced around three billion litres of diesel with up to 500 parts per million sulfur. By 2010 this will have increased to close to four billion litres with a maximum 10 parts per million sulfur. Over 30 percent of Australia's diesel consumption is currently being met by imports.

Diesel demand is linked to strong economic growth in Australia and the Asian region which means higher consumption by sectors such as mining and transport. But significantly, diesel is also expanding into the motoring mainstream with a rapidly increasing number of diesel cars.

As you'll read in this issue of The Star and its Talkingpoint insert, consumers like the fact that diesel cars are not only more fuel efficient than petrol cars but are now also becoming more environmentally friendly.

Other things are changing too. In line with growing consumer preference for premium fuels, Caltex is trialling the introduction of Vortex Premium Diesel and is meeting demand for biofuels blends with New Generation Diesel which includes 2 percent biodiesel.

The diesel revolution is one of a number of industry challenges Caltex is gearing up to meet in the next few years. As Australia's leading transport fuels manufacturer and marketer a lot rests on us having the commitment, people and strategies to succeed.

Des King