The automotive industry welcomes cleaner gasoline and paves the way for more fuel-efficient cars

Australia will finally have access to unleaded gasoline, which is refined by modern standards, but not until 2024.

More fuel-hungry motorists will soon have better access to the latest gasoline engine technology as world-class unleaded rewards become the new norm after the federal government pledged $ 2 billion to support Australia's last two oil refineries. and it helped introduce long- needed improvements to produce cleaner unleaded fuel .

Hours after the federal government announced its unprecedented support program, energy giant Ampol (formerly Caltex) confirmed that its Lytton refinery near Brisbane would remain operational "subject to successful government legislation as proposed".

Ampol and the Viva (formerly Shell) plant in Geelong are the last two remaining oil refineries in Australia. Twenty years ago it was eight. In 2015, the number of refineries was reduced to four , and for the past six months Australia only has two .

MORE: Everything you need to know about fuel supply and quality issues in Australia

This means that clean unleaded gasoline with a maximum of 10 ppm sulfur instead of our current standards of 50 ppm lead-free and is 150 ppm flowing lead-free by 2024 from the gas tank, after the updates were made in 2023.

The introduction of clean unleaded gasoline in 2024 is four years ahead of schedule, but still more than a decade after Europe made it mandatory. Australia switched to 10ppm diesel in 2009.

The automotive industry has welcomed the promise of unleaded gasoline that meets modern standards.

Volkswagen , the auto industry lobby group, the German Federal Chamber of the Automotive Industry (FCAI) and the leading organization of auto clubs, the Australian Automobile Association (AAA), praised the move towards cleaner unleaded gasoline. A recent study rated Australia 85th out of 100 countries for fuel quality .

Michael Bartsch, Chairman of the Board of Management of Volkswagen Group Australia, said the federal government's support was "an important step towards bringing Australia into line with the fuel standards of the First World".

"Volkswagen was the first and is still the leading voice calling for the cleansing of Australia's high-sulfur gasoline," said Bartsch in a press release.

The Volkswagen executive said the review was "potentially a big step forward in enabling Volkswagen to introduce the world's most advanced and efficient conventional engines".

Although some European brands have already introduced a small number of models equipped with sensitive gasoline particulate filters that are optimized for lead-free operation with a sulfur content of 10 ppm, the Federal Chamber of the Automotive Industry (FCAI) stated that an assortment was not imported . . due to warranty issues due to Australian fuel regulations.

"The low fuel standards in Australia compared to regions like Europe and Asia have meant that some automakers have been unable to introduce some of the best fuel-efficient and environmentally friendly technologies to the Australian market," said Tony Weber. CEO of the FCAI. a statement to the media.

"We now have a great opportunity to balance Australian fuel quality with the rest of the world, promote the supply of the latest engine technology and take further steps on the path to reducing emissions."

The Australian Automobile Association (AAA), the leading organization of automobile clubs like NRMA, RACV, RACQ, and subsidiaries in other states and territories, has welcomed the move to cleaner gasoline but asked if the country has adequate fuel reserves.

Michael Bradley, AAA chief executive officer, said in a statement: "Australia's efforts to reduce emissions from its vehicle fleet have been hampered by the fact that we are currently selling engine technologies developed for the fuel markets in Libya, Argentina and Iraq. "

The relatively high concentration of sulfur in Australian refined fuels "adversely affects the performance of pollution-reducing technologies used in modern vehicles," AAA said.

"Singapore-based energy consultancy Stratas Advisors ranked 100 countries for fuel quality last year, with Australia rated 85," added AAA.

While the oil refinery subsidies will push taxpayers to pay refineries to "clean their fuel" and "maintain Australia's refining capacity," the impact on fuel safety remains uncertain, AAA said.

"Protecting the remaining Australian (oil refineries) appears to be a security solution until it is believed they imported 81% of the crude oil refined in 2018-19," Bradley said.

The AAA also highlighted data on the oil refining lobby's website, the Australian Petroleum Institute (AIP), which "raises questions about the safety benefits of the subsidy".

The AIP website states that "the closure of refineries has not weakened Australia's security of supply" and "there is no significant difference in supply risk between a supply of crude oil and petroleum products".

While AAA praised plans to balance the quality of Australian unleaded products with world best practices without raising Bowser's prices, Bradley said, "Fuel safety is for sale. However, if we are to significantly improve fuel safety in Australia, we need an integrated approach to production, storage, technology change, energy diversification and fuel emissions reduction. ""

The automotive industry welcomes cleaner gasoline and paves the way for more fuel-efficient cars

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