Europe pressures Australia to improve fuel quality
Australian fuel may no longer be among the dirtiest in the world as part of European free trade dealAustralia’s poor fuel quality standards may finally be overhauled as part of the federal government’s free trade agreement (FTA) negotiations with Europe.
reports fuel quality is one of the focal points of the next round of FTA negotiations between the European Union and Australia in October.The much-maligned $600 million luxury car tax (LCT), which overwhelmingly affects European models, is also in the crosshairs of the EU.
Cited as a “technical barrier to trade”, Australia’s poor fuel quality already has prevented the sale of dozens of European vehicles from multiple manufacturers, including those fitted with petrol particulate filters.
In many instances, manufacturers have needed to revert to engines with older technology, or simply pare back their line-ups.
Trade minister Simon Birmingham said Australian fuel standards would be reassessed as part of bilateral negotiations.
“As part of the free trade negotiations we will consider everything that is put on the table. Whether we agree to it is a different matter,” Birmingham told the Guardian.
“It is not Australian practice to simply adopt European standards – we urge and encourage common adoption of international standards where possible.
“But we will work through in a practical way any of these issues and see what may be possible in the Australian context, but ultimately we will only be doing any agreement if it is in the overall benefit of Australia.”
Australia ranks 66th in the world for fuel quality, the lowest of all developed countries. The ranking is owed in part to our high sulphur allowance of 150 parts per million (ppm) in unleaded fuel and 50ppm in premium unleaded. This compares with 10ppm allowed by the European Union.
Last year, Volkswagen Australia chief Michael Bartsch said the country risked becoming “a third-world dumping ground” for older, high-polluting cars unless action is taken to improve fuel quality.
The federal government released a draft regulatory impact statement on the issue in 2018 looking at a range of options and timelines for improving our fuel standards – ranging from 2022 and 2027.
The EU will reportedly push Australia to raise its poor fuel standards, along with cementing support for emissions reduction targets agreed to under the Paris accord.
According to the Guardian, Europe wants “respect and full implementation of the Paris agreement” underscored in the text of the agreement.
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