Next Government must commit to cutting the cost at the pump

Petrol prices might have eased recently with reduced crude oil prices, but the Victorian Automobile Chamber of Commerce (VACC) is calling on the next State Government to act to reduce the cost of petrol for motorists.

VACC Executive Director, David Purchase, said the next State Government should reduce the tax on petrol by rebating some of the GST it receives from the Federal Government on petrol sales.

“It’s time our politicians planned ahead to help families at the pump,” Mr Purchase said.

Mr Purchase said both the State and Federal Governments had the ability to act; the State Government could redirect the money it receives from the GST on petrol back into motorists’ pockets, while the Federal Government could reduce its excise take.

“The Queensland Government subsidises petrol by 8.34 cents per litre, (representing $550 million per year).”

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 on excise.
 
“Over the past few months, we’ve seen Federal and State Governments act to subsidise LPG conversions, push for E10 ethanol-mix petrol prices and provide research funding for alternative fuels, but, so far, nothing has been done to reduce excise and GST on petrol,” he said.

“While we strongly support alternative fuel initiatives, the greater population of motorists rely on petrol.

“The States can do their bit to help people balance their family budgets by rebating some of the GST collected on excise.

“Doing this could reduce the price at the pump by 3.4 cents per litre,” Mr Purchase said.