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Latest Price Movement Puts More Pressure On Govt

Latest Price Movement Puts More Pressure On Government

The Automobile Association says Caltex’s move to increase the price of petrol by four cents a litre puts yet more pressure on the Government to review the amount of excise tax it takes for general expenditure.

“The Government needs to show it is sensitive to the social and economic problems being created by these increases,” the Association’s Director of Public Affairs, George Fairbairn, said today.

“We have received overwhelming support from motorists since we called on the Government to reduce the level of excise tax it takes off motorists for non-roading activities, balanced against the gains from increased GST revenue.”

Mr Fairbairn said the latest increase was the 21st since July last year, and meant the price of petrol had risen by 42c/litre in that time.

“Filling an average larger car, with a fuel tank capacity of approximately 70 litres, will now cost an additional $29.40, compared with the cost at the beginning of July last year.

“For an average smaller car, with a fuel tank capacity of 40 litres, the additional cost of filling the tank is $16.80.“

Mr Fairbairn said that 13 months ago petrol was selling in the main centres for an average price of 79.9c/litre for 91 octane and 84.9c/litre for 96 octane.

“At that time the Government collected GST of 8.88c/litre for 91 octane. Based on this latest increase, the Government will now collect 13.54c/litre GST. For 96 octane the figures are 9.43c/litre a year ago and 14.10c/litre today.

“Clearly, the Government is accruing additional revenue through these price increases. We repeat our call for it to ease the pressure on families and the economy by reducing the level of excise tax. “

Ends

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