It has been estimated that less than half of the approximately 500 million litres of lubricating oil sold in Australia each year is recycled. In addition to this, between 60 million and 100 million litres of oil sold each year cannot be accounted for.
It isnt clear what happens to this missing oil, however, it is likely to be:
- Sitting in home garages and sheds

- Retained in scrapped vehicles and equipment
- Lost due to leaks and spills
- Disposed of in household rubbish; or
- Illegally dumped
Used oil is hazardous, toxic and harmful to the environment and humans if irresponsibly discarded or handled. In addition, it is a valuable resource, which, even after it has been used in motor vehicles, can be recycled and reused.
In 2001 the Federal Government introduced the Product Stewardship for Oil Program to provide incentives to increase used oil recycling. This program involves the collection of a 5.449 cents levy on every litre of new oil sold. The money collected is used to encourage the environmentally sustainable management and re-refining of used oil, and its reuse.
Where does used oil come from?
Motor vehicles are a major producer of used oil with the average passenger car producing four to five litres each 5,000 to 10,000 km they travel.
While oil doesnt wear out, it does become dirty, with the additive packages that make oils perform their various tasks eventually being used up. This results in the oil no longer being able to perform its intended function.
Used engine oil is hazardous
Depending on the application, oils can pick up a variety of hazardous materials while in use. These can include lead, dioxins, benzine and polycyclic aromatics, so its important to handle all used oil carefully.
Precautions should include ensuring that the area is well ventilated; a suitable drip tray is used to catch any spills and the use of appropriate protective clothing, including gloves and safety glasses.
New oil containers often carry instructions for handling used oil.
Disposal of used oil
The irresponsible disposal of used oils has the potential to pollute land and water, as well as damaging infrastructure, such as sewerage treatment plants. Many local authorities operate oil collection facilities and there are currently more than 450 throughout Australia.
What happens to the oil that is collected?
Used oil is cleaned and distilled to produce re-refined base oil that is suitable for use in a range of products, such as lubricating oil, hydraulic or transformer oil. It can also be used as an industrial burner fuel.
For more information about oil recycling, the stewardship program or related issues visit Environment Australia at www.ea.gov.au.


