The cost of new cars could be going up as the government looks to set a compulsory clean fuel standard.
In a move designed to make fuel cleaner and car engines more efficient, the government wants to introduce compulsory fuel targets in line with the European emission standards..
Peter Khoury from the motoring organisation, the NRMA, says that while the plan will help reduce toxic emissions, it's not that simple.
Peter Khoury: "We are way behind in terms of the quality of our fuel to overseas standards. Our refineries here in Australia or 40 or 50 years old so it's not just as simple as saying we'll raise the standards to Euro 6."
Car manufacturers Holden, BMW and Hyundai say they support the idea.
But the Institute of Petroleum, representing fuel companies, says the plans threaten the existence of fuel refineries.
