Australia’s fuel is the “dirtiest” in the OECD. Picture: Norbert Millauer/AFP/DDP

In a discussion paper released this week, the government proposes five scenarios to update existing fuel standards, one of which would see 91 octane regular unleaded petrol “phased out” over two to five years.

Australian fuel is rated the “dirtiest” out of 35 OECD countries based on sulphur content. The government’s proposals centre around setting maximum sulphur limits, which would potentially cost the country’s remaining four oil refineries billions of dollars to implement.

Regular unleaded petrol makes up 73 per cent of all petrol sold in Australia excluding NSW, where the state government’s ethanol mandate has driven motorists to buy more expensive premium unleaded, shunning E10.

In NSW, premium makes up 54 per cent of petrol sales, followed by E10 with 36 per cent and 10 per cent for regular. Nationally excluding NSW, premium accounts for 23 per cent and E10 just 4 per cent.

On average, 95 octane premium unleaded is 11.5 cents per litre more expensive than regular petrol, and 98 octane is 18.5 cents per litre more expensive.

The paper says “particular attention” will be given to the impacts of the proposals “across socio-economic groups”, which it says is “particularly relevant for the phase out of [regular] unleaded petrol”.

NRMA spokesman Peter Khoury said while there was “no doubt we need to make our fuel cleaner”, there would be a large “cost factor” for consumers in getting rid of regular unleaded petrol.

“The gap between E10 and 98 octane on average is 21 cents per litre, and on any given day it can be as much as 30 cents or 40 cents,” he told news.com.au. “There are no safeguards in place to protect motorists from exorbitant charges when these fuels come in, and if you’re taking out 91 octane you’re giving them no choice.”

Mr Khoury said the NRMA didn’t agree with government’s position that the higher costs of new cars under the new environmental standards would be offset by savings from greater fuel efficiency.

“Manufacturers lab test their cars, real world performance is much worse. Our analysis is performance is 20 per cent worse, in some instances 35 per cent worse than what the manufacturers are telling us,” he said.

“The government needs to tell people what the costs are going to be based on the actual costs, not costs based on false data. And the best way to do that is for the government to take a leadership role in performing real-world testing.”

FIVE PROPOSALS TO REFORM FUEL STANDARDS

• A: Australia’s fuel standards remain in effect in their current form (business as usual). Petrol standards retained: unleaded petrol (91 RON) with a maximum sulphur limit of 150 ppm; premium unleaded petrol (95 RON) with a maximum sulphur limit of 50 ppm. Diesel standard continues to specify a maximum sulphur limit of 10 ppm and derived cetane number of 51 for diesel containing biodiesel only.

• B: Revisions to the fuel standards to align with the recommendations of the Hart Report and to harmonise with European standards. Unleaded petrol (91 RON) would be phased out over a specified period of time (e.g. two to five years). Sulphur in premium unleaded petrol (95 RON) would be limited to 10 ppm and a new octane standard for premium unleaded petrol (98 RON) introduced. More stringent requirements would be introduced for cetane and polycyclic aromatic hydrocarbon levels in diesel.

• C: Revisions to the fuel standards to align with the recommendations of the Hart Report and to harmonise with European standards as per alternative B above, except that unleaded petrol (91 RON) is retained but with a lower sulphur level of 10 ppm.

• D: Revisions to the fuel standards as per alternative B above, except with even stricter parameters (including for cetane levels in diesel) to harmonise with the standards recommended by the Worldwide Fuel Charter (that recommends the fuel quality required by car companies to meet particular emission standards).

• E: Staged introduction of world standards from 2020, with a review in 2022 to determine next steps. Unleaded petrol (91 RON) would be retained. Sulphur would be reduced to 50 ppm for unleaded petrol (91 RON) and 25 ppm for premium unleaded petrol (95 RON) and a new octane standard for premium unleaded petrol (98 RON) introduced. Revisions to other parameters as per alternative B above.

Source: Better Fuel for Cleaner Air

frank.chung@news.com.au