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Insidecostarica.com - San José, Costa Rica  -  Thursday 20  April 2006

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Costa Rica
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Drivers Complain About Ethanol Gasoline
Costa Rica's state-run national gasoline refinery RECOPE began a pilot project last month, exclusively in the province of Puntarenas,  to add 7.5%ethanol to gasoline at 63 gas stations in the region.

The program, funded in part by Brazilian oil company Petrobras, cost us$15 million and will eventually be expanded across the country, if results are positive, in an attempt to bring down Costa Rica's oil costs, which jumped by 45% between 2004 and 2005.

However, in a short time, the program has not been welcomed well. Many drivers are complaining of poor performance and engine problems, from knocking to stalling.

At the gasoline pumps in Puntarenas, regular gasoline is being sold wit the ethanol mixture and the complaint is that consumers who prefer not to sue ethanol are forced to buy the more expensive super gasoline.

RECOPE says that there is little difference between regular and the ethanol mix. The process is less dependent on oil, costing less and burns cleaner.

Ethanol, also known as ethyl alcohol, is made from a sugar by-product and then mixed with gasoline to reduce pollution and lower prices.

Critics question RECOPE's position and ask why then is the ethanol mix sold at the same price of regular and giving consumers no choice.

Gasoline station owners and their employees are not telling customers that the regular gasoline they think they are purchasing is ethanol.

Many vacationers during Semana Santa found out the hard way when complaining to their mechanic of car problems. Since the product is only sold in the Puntarenas province, those from other parts of the country, especially San José aren't aware of the program.

Costa Rica is an oil importer and record high oil prices are causing economic hardship for local businesses and consumers.

RECOPE announced the latest request to increase prices that will see a litre of super gasoline surpass the ˘600 colones mark. The current price for super is ˘475 colones.

Oil prices and environmental concerns are expanding worldwide markets for ethanol, since burning alcohol instead of gasoline reduces carbon emissions by more than 80%t.

In Brazil, three-quarters of all new cars burn either ethanol or gasoline depending on which is cheaper at the pump, and ethanol is now available at nearly all of the country's 34,000 gas stations.

The U.S. ethanol market grew 11 percent between 1995 and 2004, according to the U.S. Trade Representative. The
European Union set a target for biofuels to account for 2% of all transport fuels used in Europe by 2005, rising to 5.75 percent by 2010.
 



 




 


 
   

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