The Roads and Maritime Services (RMS) campaign will be launched on July 1 and reach motorists through registration renewal letters and emails, posters in motor registries and online advertising on the RMS website, as well as digital advertising on Facebook, ebay and other automotive websites.

NSW Deputy Premier Andrew Stoner and Roads Minister Duncan Gay announced the campaign this week and the reasons for it.

"A strong and sustainable biofuels industry brings a number of benefits, including the potential to decrease fuel prices for motorists, a reduction in emissions, as well as a reduced reliance on foreign fuel imports," Mr Stoner said.

"A sustainable biofuels industry will also drive employment and investment in regional NSW, while also helping to reduce cost of living pressures."

Mr Stoner said the government's ethanol mandate dictated that six per cent of the total volume of petrol sold in NSW must be ethanol-blended.

"The O'Farrell/Stoner government will be enforcing the ethanol mandate to ensure that ethanol-blended petrol is more widely available," he said.

"This new campaign will not only help promote the use of biofuels among motorists, but along with other measures including the appointment of independent members to the Biofuels Expert Panel, it will also ensure the mandate is being met."

Mr Gay said most NSW cars that used unleaded petrol could safely use 10 per cent ethanol-blended fuel called E10.

"Not only is E10 safe for the vast majority of cars on the road, it is cheaper than regular unleaded fuel and better for the environment," he said.

Yesterday Mr Grant put his hand up as an E10 user.

"'I use E10 in my vehicle and have had no problems as a result," he said.

The MP urged the community to decipher fear from fact in deciding which fuel to buy.

"I've heard all the stories about how damaging E10 is to different engine types and what equipment can't take E10 such as mowers or the like but it is very hard to disseminate the fear campaign against the facts," he said.

"I'm not an expert but believe from the information I have available to me, that in essence there are very strict regimes in both this state and country where biofuels have been tested to the hilt.

"There is a strong case for biofuels and they wouldn't be on the market if the reality of the fear was remotely true so I have no reason not to support the expanded use and availability of biofuels."

Motorists can access information on whether their vehicles can operate on E10 by visiting www.fcai.com.au/publications/all/all/all/3/can-my-vehicle-operate-on-ethanol-blend-petrol.