While the per litre cost may be cheaper, ethanol has 32% less energy than petrol, which means you'll burn more to do the same work. At 99c a litre, it's not much cheaper than petrol, but it is cleaner burning and renewable.
See this link for a detailed document
http://devafdc.nrel.gov/pdfs/6968.pdf
85 100 per cent ethanol fuel soon cheap, page-2
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