Saturday, May 23, 2009

Save $700

The decision by President Obama to improve fuel consumption standards of American cars means that over the next 7 years, the average mileage will go from around 10 km/litre up to 15. As Obama points out, "Consumers pay less for fuel, which means less money going overseas, and more money to save or spend here at home".

So it makes sense that we would want the same thing here. The ACF and the NRMA outlined the benefits of Australia having a similar standard. Apart from reduced greenhouse emissions, it would keep the Australian car industry competitive internationally - in Japan the standard is 5L/100km (=20km/litre).

But probably the most obvious outcome is for the hip-pocket. Obviously, using 1/3 less fuel means paying 1/3 saving at the pump. NRMA found that fuel standards would save the average driver $700. Across Australia that's billions every year.

No comments: