Fuel Prices Set to Rise - Again
The death knell had sounded for two vital fuel subsidy schemes and petrol prices were set tor rise in regional and rural Queensland as a result, Premier Peter Beattie said yesterday.
Mr Beattie said as of Friday night the Howard Government had scrapped the Fuel Sales Grants Scheme and the Petroleum Products Freight Subsidy Scheme.
The Fuel Sales Grants Scheme provides a rebate of one to two cents per litre to compensate for the impact of the GST. The scheme was put in place because fuel prices in regional and rural areas are higher resulting in a higher GST charge.
The Petroleum Products Freight Subsidy Scheme provides grants to fuel companies to reduce the cost of freighting petrol products to remote areas and assists in reducing the price differential between city and country prices. If business costs go up, such as increased freight costs due to the price of fuel, then the business will need to offset that by passing on the increase to consumers.
Mr Beattie said he had been calling on the Howard Government to reverse this hard hearted decision but the pleas had obviously fallen on deaf ears.
He said the RACQ had also warned that fuel price increases would be inevitable if the schemes were scrapped.
The Queensland Government provides a 8.354 cents litre subsidy and has no plans to remove it.
