Price jump fear in new fuel plan
MOTORISTS will be forced to pay up to $ 645 more a year for fuel and will no longer get access to regular unleaded if the Federal Government pushes ahead with a controversial plan to reduce petrol emissions by 2020.
The Australian Automobile Association has warned drivers face huge increases at the petrol bowser as a result of a government proposal to ban the sale of regular 91 octane unleaded in the Australian market by 2020.
The peak motoring group, representing clubs, including the RACQ, and their eight million members, yesterday urged the Government to rule out the proposal in a pre- budget submission presented to the Coalition.
The measure is one of five key proposals the Government is considering and was outlined in a discussion paper released in December last year.
Herbert MP Cathy O’Toole said the decision showed just how out of touch the Turnbull Government was regarding regional Queensland.
Ms O’Toole said with the region’s high unemployment and the costs of water and electricity, the proposal would hit the region hard.
“Why would the Turnbull Government place an ad- ditional burden on regional Queenslanders by increasing the cost of petrol?” she said.
Last year, 91 octane unleaded accounted for 69 per cent of all fuel sales nationally.
The measure to ban regular unleaded is part of a plan to reduce the amount of sulphur in fuel — and therefore noxious emissions — from 150 parts per million to the European standard of 10 parts per million.
E10 fuel is made using a mixture of 91 unleaded and ethanol and so would not be available in its current capacity if regular unleaded was banned. A new mixture of premium and ethanol would need to be made, at minimal cost savings to the premium blend.
AAA CEO Michael Bradley said the Government needed to take the option to ban regular unleaded by 2020 off the table and that a longer transition towards cleaner fuels was needed.
Environment and Energy Minister Josh Frydenberg yesterday refused to rule out 91 unleaded would be banned in Australia from 2020.
“We will need to look at the potential impacts on refineries and fuel prices before making a final decision on any changes to fuel quality standards,” he said.
“The Government will only be making changes that are clearly to the benefit of Australia.”