Called BPe10, the fuel comprises a mixture of 10% renewable ethanol with regular unleaded. It went on sale at the Kingston, Phillip and Braddon sites on Saturday.

"Making BPe10 available to customers in Canberra is an example of how BP is working with the Australian Government to deliver their biofuels target," BP spokesperson Mike McGuinness said.

He said Canberra motorists could now choose a fuel that was good for their vehicles, good for the environment and good for Australian agriculture.

BP commenced marketing e10 in Brisbane in 2001, and has sold it in the US under the Amoco and ARCO brands since the mid-1980s.

The petroleum giant said it had sold 14 million litres of e10 and had not received a single vehicle complaint.