NO.118

JOINT MEDIA RELEASE

THE MINISTER FOR ENVIRONMENT AND HERITAGE

GOVERNMENT DELIVERS CLEANER DIESEL STANDARDS

The diesel component of the Cleaner Fuels measure will come into force on 1 January 2007.  This aims to ensure that Australia’s diesel and our urban environments remain amongst the cleanest in the world. 

The introduction of cleaner diesel will deliver significant environmental and health gains through reduced emissions of particulates that are known to cause respiratory problems. It will also facilitate the broader adoption of advanced vehicle emissions control technologies and lead to reduced emissions of hydrocarbons and oxides of nitrogen.  

Specifically, this measure encourages the early supply of diesel with 10 parts per million or less of sulphur, which is 80 per cent less than the current standard, by providing a grant of 1.0 cent per litre for each litre of this fuel supplied in Australia.  The grant will be provided from 1 January 2007 until 31 December 2008.  Diesel with 10 parts per million or less of sulphur becomes the mandatory standard on 1 January 2009.

The diesel excise rate will remain unchanged at 38.143 cents per litre, the same rate as when the Government reduced excise and abolished indexation in March 2001. 

This measure builds on the Government’s previous commitments to introduce cleaner transport fuels.  These commitments have reduced the average level of sulphur in diesel from around 1,300 parts per million in 2000 to 50 parts per million of sulphur which was mandated on 1 January 2006. 

This measure delivers on the Government’s commitment in the Measures for a Better Environment package, announced on 31 May 1999, to promote the conversion to the cleanest practical fuels.  This measure is also consistent with the Government’s agreement with the Australian Democrats.

MELBOURNE

30 October 2006

Contact:

Renae Stoikos, Treasurer’s Office, 03 9650 0244

Rob Broadfield, Minister Campbell’s, Office 02 6277 7640