Ethanol is a chemical compound derived from processing corn, sugarcane, cassava, sweet potatoes, and sorghum plants.
Due to its volatile and flammable nature, ethanol can be used as an alternative fuel for vehicles.
However, ethanol-blended fuel has a lower energy content compared to regular gasoline.
According to BG Products, an automotive company from the United States that also operates in Australia, fuel blended with 10% ethanol, or E10, contains 31 megajoules of energy per liter.
Meanwhile, regular gasoline contains 31.8 megajoules of energy per liter.
Although E10's energy content is lower, BG Products considers the difference insignificant.
"If you use E10, you might experience a slight decrease in fuel efficiency," said BG Products on its website.
"Typically, this does not make a significant difference in daily driving," they said.
BG Products also stated that ethanol fuel may not be suitable for all types of vehicles, especially older model vehicles.
"Ethanol is slightly acidic and absorbs water, which can cause corrosion to metal components over time. Modern vehicles have protective coatings, but older or poorly maintained cars are more vulnerable," said BG Products.