How much would carbon tax add to price of petrol

Posted by: on July 17th, 2008

‘Burning one litre of Petrol releases 2.36 kg of CO2 (under the ‘perfect’ fuel/air mixture). I know this sounds unreasonable when one litre of petrol weighs around 0.75 kg, but the majority (over 70%) of the CO2 weight is made up of the oxygen which is consumed from the air and does not originate from the petrol.’ ref.

Wikipedia entry on carbon trading mechanisms

Indicative pricing: at AUD30 per tonne, petrol would increase by

1 tonne of petrol = 1333 litres

1333 litres of petrol produces 3467 kg of CO2 which, at AUD30/t = AUD104

So, AUD104 divided by 1333 = AUD0.08 extra per litre.

Posted in: Comment, Environment.Tags: .

1 Comment

  1. Tax Jobs on March 3rd 2009, 6:42 am

    Great information…thanks!

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