Emission Plan may add 10c to Petrol say Oil companies

The Federal Government's planned emissions trading scheme may add 10 cents a litre to the cost of petrol, but this would do little to encourage motorists to cut back on emissions of greenhouse gases, according to oil companies.

The big fuel manufacturers - BP, Caltex, ExxonMobil and Shell - are divided over whether, and how, petrol should be included in the emissions trading scheme that the Federal Government plans to introduce from 2010.

But they have all told the Government that if it wants to significantly cut carbon dioxide emissions from vehicles it will need additional policies such as stricter fuel efficiency standards for cars and traffic management and road pricing measures. Read more.