Cleaner unleaded gasoline locked down for 2024 but prices will rise
The Federal Government has finalized paperwork for the introduction of unleaded low-sulfur gasoline three years ahead of schedule – still more than a decade behind Europe – but will cost motorists more on the bow.
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Australian drivers will finally get access to better and lower quality unleaded gasoline three years earlier than planned – but more than a decade after Europe introduced equally stringent quality measures – after the Federal Government passed a law to introduced on December 15, 2024.
The move cuts three years of waiting time for low-sulfur unleaded gasoline and will pave the way for a new generation of engine technology in modern cars in Australian showrooms.
The new fuel will have a maximum sulfur content of 10 parts per million, down from the current standard of 50ppm for premium unleaded and 150ppm for regular unleaded.
As previously reported by DriveEurope mandated 10ppm unleaded in January 2009 and Australia’s fuel quality has slumped at the same rate as developing countries since then.
“Last month, the Australian Government passed legislation promoting a 10 ppm sulfur limit for all gasoline sold in Australia from 2027 to 2024,” a spokesperson for the Department of Climate Change, Energy, Environment and Water said in a statement to Drive.
“The government previously announced an intention to advance the 10 ppm sulfur limit from 2027 to 2024, however they did not create the necessary legislative instruments to enact the change.
“The Australian Government is exploring various steps to improve Australia’s fuel quality to complement its commitment to stronger action on climate change and put Australia on track to achieve net zero emissions by 2050.
“The start of the standard for reducing sulfur in 2024 means that all fuel sold at gas stations from December 15, 2024 will have a maximum sulfur content of 10 ppm.”
The changes bring Australia in line with the world’s best standards for unleaded gasoline, but a full 14 years after Europe switched and more than 20 years since European regulations first targeted sulfur content in unleaded fuel in 2000.
This change also incurs costs for motorists, as the department expects a slight increase in fuel prices.
“Reduced sulfur gasoline will have a marginal price premium of around 0.6 to 1.0 cents per liter, which equates to an additional cost of about $8 per household over three years,” the spokesperson said. Drive.
“The health savings outweigh the increased costs for motorists of about $760 million.”
Key to the cleaner fuels program is the upgrade of Australia’s two remaining fuel refineries — Ampol in Brisbane and Shell/Viva Energy in Geelong — in a move also intended to protect the country’s fuel supplies and stocks.
The number of refineries has been declining for nearly a decade, with two — Shell at Clyde and Caltex at Kurnell, both in Sydney — decommissioned in 2012 and 2014, respectively.
Since 2019, BP’s Perth refinery and Mobil facility in Melbourne have also been closed.
The change to low-sulphur unleaded gasoline follows a previous requirement for the same sulfur levels in diesel fuel sold in Australia following an upgrade to a local refinery from 1 January 2009.
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