Climate Council: Inaction on Efficiency Standards Costs Australians More in Fuel

The Climate Council’s study indicates that, on average, Australian cars consume more petrol to travel the same distance compared to more fuel-efficient overseas models. This discrepancy is leading to increased costs for Australians during road trips. The council’s analysis, based on data from the Australian Bureau of Statistics, shows a significant cost difference in fueling different types of vehicles. For instance, a trip from Brisbane to Sydney would cost an average Australian car $196 in petrol, while a more efficient petrol car would only require $79, and an electric car would need just $40 for charging. Similar cost differences are observed for other routes like Melbourne to Sydney and Canberra to Melbourne.

Dr Jennifer Rayner of the Climate Council emphasises the financial burden of traditional road trips due to inefficient fuel consumption and calls for the introduction of more fuel-efficient cars to reduce costs and pollution. The council is pressing the Albanese government to introduce fuel efficiency standards urgently, noting that Australia, alongside Russia, is among the few developed nations without such standards. These standards would limit emissions across a manufacturer’s sales, encouraging the supply of low-emission vehicles and penalising high-polluting cars.

Currently, Australia faces a shortage of electric vehicles (EVs) as manufacturers prefer markets with established fuel efficiency standards. This shortage has led Behyad Jafari, CEO of the Electric Vehicle Council, to describe Australia as a “dumping ground” for less efficient cars. Implementing a fuel efficiency standard could change the types of vehicles entering the Australian market.

Despite the trend towards SUVs and utes, which has led to an extra $13 billion spent annually on fuel, 16.2% of car sales in 2023 were electric, plug-in hybrid, or standard hybrid vehicles. This change comes amidst a record year for new car sales in Australia, though none of the top 10 most bought cars were sedans or hatchbacks.
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