Introduction
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Purpose
This discussion document seeks views on the proposed changes to the Engine Fuel Specifications Regulations 2011.
Background
The Ministry of Business, Innovation and Employment (MBIE) is responsible for administering the Engine Fuel Specifications Regulations 2011 (the Regulations or EFSR). The Regulations set out minimum standards for fuels supplied to New Zealand and help to ensure that fuel is appropriate for New Zealand’s vehicle fleet and climatic conditions, that motorists know they are getting what they pay for, and that the environmental and public health impacts of fuel are limited.
MBIE’s Trading Standards Team is responsible for fuel quality monitoring and ensuring that the specifications set out in the Regulations are met by fuel importers.
The Regulations currently provide fuel specifications for petrol, petrol/ethanol blends, diesel, biodiesel and diesel/biodiesel blends.
The Regulations are periodically reviewed to ensure they are fit-for-purpose and keep pace with developments in technology. While the regulations were expanded in August 2022 to include new requirements for maritime fuels (to support the implementation of the International Convention for the Prevention of Pollution from Ships (MARPOL) Annex VI), the last time they were fully reviewed and updated was in 2017. It is timely to review the Regulations again in view of international trends in vehicle emissions standards and other technological developments.
Euro 6d/VI and vehicle emission standards
Fuel standards ensure that the quality of New Zealand’s fuel meets the performance requirements of our vehicles, avoids engine damage, and avoids adverse impacts on human health and the environment.
To work effectively, fuel and vehicle standards should be aligned. Modern vehicles that require a particular quality of fuel can suffer damage if a poorer quality fuel (acceptable under out-of-date fuel standards) is used.
The global benchmark for fuel standards are the common standards adopted by Europe. Other countries (such as the United States) have similar requirements to the European standards. The current European standard is Euro 6 fuel, which was introduced in 2015. For vehicles, the standard is Euro 6d.
New Zealand still uses the Euro 5 standard from 2009 but we will be moving to the Euro 6d vehicle standards from December 2025 for new imports and July 2028 for used imports.[1] Our out-of-date fuel standards, and their misalignment with the Euro 6d vehicle standard, could mean that Euro 6d vehicles that are designed to run on cleaner fuels may suffer engine damage, or that we miss out on vehicles with the latest emissions reduction technologies.
Scope
The Regulations are reviewed periodically to keep up with developments in engine and fuel technology and test methods. Reviewing the Regulations also provides an opportunity to ensure New Zealand is keeping pace with international standards and other areas of government policy.
This review focuses on the technical specifications for petrol, diesel, ethanol, biodiesel (FAME) and renewable diesel (HVO). Jet fuel specifications are out of scope as they are set by ASTM International.
This review also does not examine specifications for gaseous fuels and liquefied gaseous fuels. We do not anticipate that these will be used for transport on a commercial scale in New Zealand in the near future.
Objectives and Evaluation Criteria
The Regulations have become more stringent over the years. This has reduced harmful emissions from vehicles and enabled uptake of more efficient and cleaner vehicle and fuel technologies.
When we reviewed the Regulations, we wanted to ensure our fuel specifications are up-to-date, and avoid potential engine damage, costs to consumers and harmful emissions (including greenhouse gas emissions). Increasingly, modern engines need cleaner fuels to operate and it is important we keep up with international developments.
Where there are options in this paper, they are assessed against the following criteria:
- Emissions reduction — including keeping pace with international vehicle harmful emission standards, and facilitating adoption of low-carbon emissions fuel.
- Ensuring consumer protection - ensuring that fuel is fit for purpose.
- Avoiding disproportionate economic cost to consumers (taking into account impacts on fuel prices and difficulty in sourcing fuel products from overseas refineries).
- Optimising government administration (taking into account fuel quality monitoring costs and regulatory burden).