World-leading Fuel Economy Label programme gets underway
New Zealand car buyers will now find it easier to choose a car that goes further on a full tank, with the introduction of fuel economy star ratings.
The rating will be shown on a label on cars for sale, and on internet listings, provided information on the fuel economy of the vehicle is available. The fuel economy information has been collected since 2005 for new cars and used cars manufactured since 2000, so large numbers of late model cars will have labels from 7 April 2008.
While a number of countries require Fuel Economy Labels on new cars, New Zealand is the only country to extend this to used cars.
Energy Minister David Parker, speaking at the launch of the programme, said the New Zealand vehicle fleet is a unique mix.
“That’s why we’ve had to come up with a unique solution.”
Consumers seek economic cars
With fuel prices on the rise, and some commentators predicting we’ll soon be paying two dollars a litre for petrol, the Minister says there are big incentives for consumers to look for more economic cars.
Research undertaken by EECA during the design phase of this programme showed that 55 per cent of those who had bought a vehicle said that the price of fuel had influenced their choice.
The AA’s survey of its members shows that fuel economy is now one of the top three factors in the decision on which car to buy, alongside safety and, of course, price.
The AA has welcomed the introduction of the labels, noting they are user-friendly, easy to understand and provide information of interest to motorists.
Saving fuel reduces greenhouse gases
Over 40 per cent of New Zealand’s total energy use is consumed in the transport sector. Passenger transport is responsible for around 20 per cent of New Zealand’s annual greenhouse gas emissions, and vehicles also contribute to air quality concerns.
Improving fuel economy will not, by itself, solve all of these problems, but it makes an important contribution. The average car in New Zealand is over 12 years old and burns through over 10 litres per 100 kilometres. In contrast, newer cars have much greater fuel economy, using as little as half the fuel required to travel 100 kilometres.
The Government’s aim is to reduce the average fuel economy to about 7 litres per 100 kilometres by 2015.
Some of this improvement will come from technology. For example, the highest rating cars currently on the market are hybrids and smaller modern diesels, which rate 5½ stars. The Government is also looking at setting minimum standards for imports.
Comparing cars shows savings
The labels counter the widely-held view that cars with the same size engine use the same amount of fuel.
For example, looking at new 3.5-litre sedans, the fuel economy ranges from the best-performing at 4 stars, with a cost per year of $2,020; to 3 stars with a cost per year of $2,900. So the less economical car is costing nearly a third more.
Looking at a standard-sized new family car (1.8-2 litres), the best fuel economy is 5 stars, at a cost per year of $1,390; with the lower end of the range at 4 stars, with a cost per year of $2,020. Again, the lower star car costs nearly a third more to run.
That applies whether you drive 2,000 kms or 20,000 kms – the lower star car will still cost more, by about the same proportion.
The cost per year on the label is calculated using an average distance of 14,000 kms and an average fuel price of $1.85 for petrol.
Online technology makes it easy
There’s been a collaborative effort to develop a system for producing labels that is user-friendly, cheap and efficient.
This has been achieved with the building of an internet-based label generator, accessed through the fuelsaver website (www.fuelsaver.govt.nz).
A trader simply has to enter the details of the car (either the plate number or another identifier), and the generator will produce a label ready for printing in a matter of seconds, provided the information is available in the database.
Traders or private individuals listing cars on the major internet trading sites such as TradeMe and AutoTrader, only have to enter the details of the car, and the fuel economy information will be loaded automatically.
The motor industry, through its representative groups the Motor Trade Association, the Motor Industry Association and the Independent Motor Vehicle Dealers Association, have assisted in designing a system that is as user-friendly as possible.
Land Transport New Zealand, the Ministry of Transport and other government agencies have also played a major role in getting fuel economy labelling up and running.
