Australian proposals to introduce new environmental and fuel efficiency standards could cost consumers.

The move would force vehicle manufacturers to make their cars more economical and make fuel refineries increase the quality of the petrol and diesel they produce.

It’s estimated the proposals would cut emissions by 65 million tonnes a year.

Although these changes would help increase efficiency and save drivers money in the long term, they could also result in increased costs being passed on to consumers.

Motorists would be likely to save more than AUD$500 (£293) on fuel bills each year but vehicle prices could rise by as much as AUD$2,000 (£1,172).

This means it would take motorists around four years to make up the extra initial cost, equal to driving around 60,000km.

Fuel refineries would be likely to have to upgrade infrastructure and consequently increase prices.

The Australian Automobile Association (AAA) said: “The AAA encourages the Government to credibly identify all of the costs and benefits associated with these proposed changes, as motorists deserve a clear explanation of how any fuel and car price increases will affect household budgets.

“We support efforts to reduce vehicle emissions, however neither consumers nor the environment benefit from symbolic regulation that drives up costs for consumers, while delivering emissions abatement only in a laboratory.”