Australia’s road sector relies heavily on conventional diesel and petrol across freight, bus, service and light vehicle fleets. For parts of the sector that are hard to electrify quickly, low carbon liquid fuels (LCLFs) are one option for reducing emissions while electric, hydrogen and other lower-emissions vehicle pathways continue to develop.
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Road at a glance
How road is reducing emissions
Road decarbonisation depends on the task. Vans and trucks that run short, predictable routes and return to a depot each night can electrify now, while long-haul and heavy-haul work over great distances is far harder to shift.
1
Electrifying urban and return-to-base fleets
Short delivery runs, depot-based operations and predictable daily routes suit battery electric vehicles, which can charge overnight, so urban freight is the most immediate part of the road task to electrify. Electric options for heavier and longer-distance work are developing, and the share that can electrify will change over time .
Fuels for road
For road transport, the main low carbon liquid fuel options are renewable diesel, biodiesel and ethanol blends for compatible petrol vehicles. Australia’s fuel quality framework includes determinations or requirements for conventional diesel, paraffinic diesel, biodiesel and ethanol fuels.
Retail fuel supply and forecourts
Step 1
From terminal to pump
Road fuels move through terminals, depots, retail forecourts and fleet refuelling sites. Product specifications and blending are set upstream, at the terminal.
Step 2
Store and label
E10 must be labelled at the pump. Diesel can carry up to 5% biodiesel without a label; higher blends are labelled. Renewable diesel is sold under its own 2025 paraffinic diesel standard.
Step 3
Check compatibility
Vehicle compatibility and quality assurance come first: OEM approvals for renewable diesel, the FCAI warranty position on biodiesel above B5, and fleet maintenance practice.
Step 4
Tell the customer
Clear customer information: what the fuel is, which vehicles it suits, and where to check the manufacturer’s advice.
Road fuels today
Across the road sector, conventional diesel remains central to heavy freight, buses and other high-utilisation vehicles, while petrol remains important across the passenger and light commercial fleet. The Transport and Infrastructure Net Zero Roadmap identifies switching to low carbon alternatives where electrification is not feasible as part of the transport transition.
Diesel remains central for heavy vehicles
Heavy freight, many bus fleets and other high-utilisation road vehicles need high payload, long range and fast refuelling.
Petrol remains important in the light fleet
Passenger and light commercial vehicles will continue to include many internal combustion vehicles during the transition period.
State biofuels schemes
New South Wales and Queensland have road-fuel biofuels sales mandates for ethanol and biodiesel in defined circumstances.
Policy, regulation and technical guidance
The sections below cover the standards, certification criteria and organisations shaping how low carbon liquid fuels are used across the road transport sector, grouped by the role they play.
Australia
Fuel quality standards for fuels sold in Australia
Sets what a fuel must meet to be legally sold in Australia, including road transport fuels, under the Fuel Quality Standards Act 2000 and its determinations.
International
ASTM D975 diesel fuel specification
The ASTM International specification for diesel fuel.
International
ASTM D5798 ethanol fuel blends specification
The ASTM International specification for ethanol-petrol blends of 51% to 83% ethanol, for flexible-fuel vehicles.
International
ASTM D4806 fuel ethanol specification
The ASTM International specification for denatured fuel ethanol for blending with petrol.
International
EN 15940 paraffinic diesel specification
The European standard for paraffinic (renewable) diesel made by synthesis or hydrotreatment.
Australia
Guarantee of Origin
Australia’s voluntary scheme that tracks and certifies the emissions intensity of products, starting with hydrogen. Launched November 2025 and set to expand to low carbon liquid fuels.
Australia
National Heavy Vehicle Regulator (NHVR)
Australia’s national regulator for heavy vehicles: heavy vehicle law, standards, modifications and the transition to lower-emissions vehicles.
Australia
Australian Trucking Association (ATA)
National trucking industry body representing 50,000 businesses and 200,000 people, publishing on low carbon liquid fuels and trucking decarbonisation.
Australia
Bus Industry Confederation (BIC)
National body for the bus and coach industry, including operators, manufacturers and suppliers.