All cars sold in Australia from December 2025 will need to comply with Euro 6d noxious emission standards, which limit what can be emitted from vehicles.

The changes would lead to fewer emissions being released and also lessen the health risk, he said.

"There are issues with regards to our petrol standards that have been way below everywhere else in the western world.

"When you have petrol standards that are lower, you have created health issues as a result of that.

"We are below not just Europe but below the United States, and that means Australia has needed to respond."

Drivers can expect an increase of $8 per year for an average passenger vehicle running on 95 RON grade petrol but the cost is more than offset by the import of more fuel-efficient vehicles and health savings.

It's estimated that transport emissions cause more than 11,000 Australians to prematurely die each year, according to a University of Melbourne study.

Figures have shown the fuel changes will save more than $6 billion in health and fuel costs by 2040.

Deputy Opposition Leader Sussan Ley said while cleaner fuel was needed, the cost of the measure also had to be considered.

"It's important that we have the cleanest possible fuel standards in Australia, but we have to balance those with cost of living and the budget squeeze that families are experiencing," she told reporters in Wodonga.

"Family budgets are under pressure and if fuel costs more, your vehicle costs more, or maintaining your vehicle costs more as a result of that, then that needs to be something the energy minister and the prime minister are conscious of."

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