Peter Costello

Media Releases

Ultra Low Sulphur Diesel



As part of the Measures for a Better Environment package agreed between the Government and the Australian Democrats in 1999 it was announced that differential excise of low and high sulphur diesel would be introduced to provide an incentive to encourage the early uptake of ultra low sulphur diesel (ULSD) before the introduction of the mandatory fuel standard in 2006. The differential was to commence with an increase in diesel excise of 1 cent per litre from 1 January 2003.

The Government has implemented the majority of initiatives under Measures for a Better Environment and continues its commitment to the package, including providing incentives for the early introduction of ULSD to the Australian market. However diesel excise will not be increased by 1 cent per litre from 1 January 2003. The Government is concerned at the possibility of raising costs to diesel users at a time when the farming sector is facing serious drought conditions. Accordingly, the Government has decided to defer for six months the implementation of the incentive for the early introduction of ULSD, with the issue being included in consideration of alternative fuels within the Energy Task Force.

24 December 2002

Contact: David Alexander
0418 210 601

24 Dec 2002

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