Australians could have saved billions in fuel costs and reduced emissions equivalent to a year’s worth of domestic flights if different fuel efficiency standards were adopted years before, a new report has found.
The dire findings come as the government’s fuel excise – a major cost-of-living relief measure to ease pressure at the bowser – nears its September end date.
Bickering has already erupted in the Senate over the excise ending, despite the former Coalition government voting months ago on when it would be axed.
The Australian Institute’s new report found $5.9 billion in fuel costs would have been saved if more robust efficiency standards were adopted in 2015.
That was the year a major analysis of the design and impact of fuel efficiency standards was conducted by the Federal Government.
The previous Labor government, led by Julia Gillard, in 2010 committed to introducing mandatory fuel efficiency standards for light vehicles but they were never adopted due to the government changing in 2013.
The report also found the standards would avoided nine million tonnes of carbon dioxide – similar to a year’s worth of domestic flights.
Australia could have imported 4000ML less oil if the measures were taken, the report’s authors state.
“In 2021, 91 per cent of all fuel consumed in Australia was imported – including 68 per cent imported as refined crude, while 71 per cent of fuel refined in Australia is imported as crude and condensate,” the report states.
“Three quarters (73 per cent) of Australia’s total liquid fuel demand is consumed by the transport sector and over half (54 per cent) is consumed by road transport alone.”
Richie Merzian, Climate & Energy Program Director at The Australian Institute, said regular Aussies were being left behind.
“As a nation, we are still accepting gas-guzzling cars with no emissions standards,” he said.
“This is costing commuters money at the petrol pump and holding Australia back from reducing our emissions.”
Fuel efficiency standards have been adopted in around 80 per cent of the global car market, but not in Australia.
“As the fuel excise cut nears an end, policymakers have an opportunity to save motorists money at the petrol pump by introducing an average efficiency standard for new cars in Australia,” Mr Merzian said.
“Australian motorists are the victims of having one of the world’s least efficient and most polluting car fleets, and it’s costing us every time we fill up at the petrol pump.”
Mr Merizan urged the current Federal Government to seriously consider the policy and bring fuel efficiency standards in line with Europe.
Extracted from The Australian