First Hungarian biofuel station to open July 9

Bio fuel will be available at retail filling stations from next week, reports vezess.hu.

German company Oil! will open the first station selling the E85 fuel containing 85% bio-ethanol and 15% gasoline near Bábolna. This is to be followed by three more in the near future, including at least one in Budapest.

It was previously reported that the first bio station would open in the capital, but according to the local government of District 14 - where the station was originally planned - it did not receive a permit.

With the appearance of the new fuel, demand for cars that work with gasoline and E85 is expected to increase. In Hungary, Saab (9-5) and Ford (Focus and C-Max) currently sells vehicles running on the fuel.

Bio fuel is not just being sold as a separate product. On July 1, the bio-ethanol content of fuel sold by Hungarian filling stations more than doubled to 4.4%. However, this figure still does not meet EU regulations. Fuels that fail to meet this requirement are liable to higher taxation. By 2010, the required rate will be up to 5.75%.

The price of the new fuel is not yet known. The E85 is usually cheaper than gasoline due to reduced taxation but the fuel efficiency is lower.

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