New cars in Australia could soon rise in cost.
In a move designed to make fuel cleaner and car engines more efficient, the federal Government wants to bring in compulsory fuel targets in line with the "Euro 6" emission standard.
The NRMA's Peter Khoury says the plan is aimed at reducing toxic emissions.
"We are way behind, in terms of the quality of our fuel to overseas standards. Our refineries here in Australia are 40 or 50 years old. So, it's not just as simple as saying, 'If we upgrade the standards to Euro 6.'"
The Government's most aggressive target is restricting emissions to 105 grams of carbon dioxide per kilometre.
It says that means the cost of a new car could go up by more than $200 in 2018 and nearly $2,000 in 2025 before going down slightly by 2040.
But the Government is projecting those costs would eventually be offset by fuel savings of up to $500 a year if petrol remains at current prices.
Mr Khoury says that leaves a lot of questions.
"There's a raft of factors which determine petrol prices. It would be very difficult to forecast prices are going to remain around the $1.30 mark. So, there's a number of assumptions being made here."
In submissions to the Government, major car-makers including Holden, BMW and Hyundai have said they support the idea.
But the Institute of Petroleum, representing fuel companies, says the plans threaten the existence of fuel refineries.
The Opposition has cautiously welcomed the move from a Government it says is dangerously lazy on climate change.
Opposition environment spokesman Tony Burke says the move should be just one part of many more, though.
"If they're acting on one part of that, then that will be a good thing. But unless you have a comprehensive, efficient, market-based way of dealing with the response to climate change, unless you have that full policy, then Australians are going to be left with a second-best outcome."
If the Government's plan goes ahead, the changes would begin in 2025.
