On Friday, Energy Minister Josh Frydenberg said a carbon tax on cars was about as likely as Elvis coming back from the dead.

But Chris Smith isn’t buying it and neither is economist Judith Sloan.

Although the Minister was adamant there was “no plan to introduce a carbon tax on cars”, he pointed to the actions of nations around the world.

“We have a process in place. Global fuel efficiency standards are in place for 80% of the light vehicle fleet. They have it in the US, they have it in Japan, they have it in Canada.”

It’s reported the federal government is considering slapping vehicle emissions targets on the car industry to make people view low emissions cars more favourably.

Only two of Australia’s top 20 cars meet the carbon-emissions target of 105gCO2/km, which could see the rest facing price hikes.

Economist Judith Sloan says the Minister will have to do something about resurrecting Elvis because a carbon price is on its way.

“Mandating a lower emissions standard for cars, that’s a carbon price,” she tells Chris Smith.

When it comes to the cost of energy, Professor Sloan says what Australians are facing is “pretty terrifying”.

“In South Australia… the most common electricity bill for households is over $2,000.”

Click PLAY below to hear more from Professor Judith Sloan