While attention has been diverted from the country’s petrol prices with a new LPG subsidy announcement, the Victorian Automobile Chamber of Commerce (VACC) is calling on the State Government to act to reduce the cost of petrol for motorists.

VACC Executive Director, David Purchase, said the State Government has the capability to reduce the cost of petrol and could subsidise it by handing back to retailers some of the GST it receives from the Federal Government on petrol sales.

“It’s time someone relieved families’ pain at the pump,” Mr Purchase said.

“Both the State and Federal Governments could act; the State Government could redirect money it receives from the GST on petrol back into motorists’ pockets, while the Federal Government could reduce its excise take.

“The Queensland Government has subsidised petrol by 8.34 cents per litre, (representing $550 million per year) paid directly to the retailers.”

Mr Purchase said this arrangement was the result of Queensland historically not charging fuel excise prior to the Federal Government taking over the tax in the 1990s. The other States were quite capable of taking a leaf out of Queensland’s book and refunding the GST kickback.
 
“Over the last week, we’ve seen the Federal Government act to subsidise LPG, and the oil companies drop E10 ethanol-mix petrol prices,” he said.

“While we strongly support these initiatives, the greater population of motorists relies on petrol. The States can do their bit to help people balance their family budgets. ”