Fuel efficiency standard found to save regional motorists $4 billion

It comes as 120 mayors and councillors across Australia joined the call for the federal government to legislate fuel efficiency standards.

"Regional Australians drive further and pay more at the petrol pump, and also have older vehicles, so the fuel efficiency standard would benefit them the most," Solar Citizens regional clean transport organiser Ben Lever said.

Solar Citizens' analysis found a fuel efficiency standard would benefit the regions by slashing overall fuel use through more efficient cars and boosting access to electric vehicles.

"Fixing fuel efficiency standards would mean more fuel-efficient cars would be sent to Australia by car companies, including a much better range of electric vehicles," Mr Lever said.

"Australia has the weakest fuel efficiency standards in the world, so car makers send us their most polluting cars."

Mr Lever said car manufacturers would have to meet an average grams of carbon per kilometre across every vehicle they sell.

"So they can go above that with some vehicles, then they have to balance that out by having less emitting vehicles," he said.

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"One of the best ways they can do that is to bring in more electric vehicles, a wider variety, including cheaper models, so that they are selling enough of them for it to make an impact on their average."

The number of electric vehicles in Australia would skyrocket from nearly 40,000 in 2022 to more than 900,000 in the first five years of the policy, according to the report.

ACT Senator David Pocock launched Solar Citizens' report in Canberra in late March.

"Australians want electric cars and electric utes in cities, in regional areas, and in rural and remote parts of the country," he said.

A united call from 120 mayors and councillors said local government was trying to switch to electric vehicles, but its "hands are tied".

"A lack of supply to Australia, and the strong federal policy to drive it, makes it difficult to transition our fleets, therefore limiting the availability of secondhand vehicles to communities," the joint statement said.

Local government representatives in regional Australia joined the call, including NSW's Wollongong City Council Lord Mayor Gordon Bradbery.

"We want to be part of the growing clean transport movement and champion the uptake of electric vehicles," he said.

"That's why we're calling on the federal government to implement fuel efficiency standards - it's an absolute must for our community's sustainable future."

The federal government recently called for feedback on Australia's first National Electric Vehicle Strategy.

The strategy is designed to improve the affordability, supply and uptake of electric vehicles.

"The consultation also sought views on whether a fuel-efficiency standard could help improve the supply of EVs into the Australian market," a spokesperson for the Department of Infrastructure and Transport said.

The government is considering more than 500 submissions.

"The Australian Government is working with state and territory governments, industry, unions and consumers to provide Australians with better access to EVs, and ensure infrastructure and industries are ready to support the transition," the spokesperson said.

"This includes consideration of a fuel efficiency standard that works for Australians, the environment and our national vehicle market."

Australia and Russia are the only countries in the OECD without a fuel efficiency standard.

On April 12, the US Government proposed stricter vehicle pollution standards.

Australia's Electric Vehicle Council warned this announcement would add local pressure.

"Car companies will now be racing to meet the more stringent standards set in the US, Europe, China, and even New Zealand," EVC chief executive Behyad Jafari said.

"If they continue to see Australia as the odd nation out, they will prioritise all other markets for their latest and best EVs.

"Australia will be dumped with their outdated gas guzzlers because it will be one of the only markets where there will be no consequences for doing so."

Mr Jafari said the US announcement was relevant for Australia given its similar driving culture.

"Its geography is broad and its culture of car ownership, especially larger vehicles, is strong. So if the US is able to move this decisively there is zero excuse for Australia not to follow suit."