KEY POINTS:
Fuel efficiency labels will be displayed on cars for sale in car yards or via the internet from April 7.
The Government said today the labels would show a star rating, similar to that displayed on fridges and other appliances.
The labels would also estimate the annual fuel cost, based on average fuel prices and distances travelled.
Energy Minister David Parker said most people could save themselves hundreds or thousands of dollars a year by buying a more fuel efficient car.
The labels would be required for cars where fuel economy information was available - all new cars and late model used cars.
The fuel economy rating would also be shown on website listings, with sites such as Trade Me set up to provide the information as part of listings.
Government spokeswoman on energy efficiency, Greens co-leader Jeanette Fitzsimons, said research showed fuel efficiency was one of the top three criteria people looked at when buying a car.
Many people did not know there could be big differences in fuel consumption even between cars of the same or similar size.
"For example, across medium cars - engine size 1.4 to 2.2 litres - there's a range from 5-1/2 stars to 3-1/2 stars. Over a year, the 3-1/2 star car will cost you twice as much in fuel as the best-rated car," she said.
The best rated cars on the market were hybrid cars and small new diesel cars, which rated 5-1/2 stars.
The Government said the labels would show fuel economy stars with ratings out of six.
They would also show a fuel consumption figure based in litres per 100km for new vehicles only based on independent testing of the vehicle.
As well, the estimated annual fuel economy based on the average fuel price and an annual distance of 14,000km would be listed.
New and late model cars would generally have labels, although some cars that were New Zealand-new between 2000 and 2004 might not have as these were imported before 2005 when the collection of information began.
Within a few years, the majority of cars would be covered.
Private individuals selling cars would not have to display a fuel economy label on the car but they would have to ensure the information was included in a website listing where it was available, the Government said.
- NZPA