More bad news with fuel prices !

Submitted: Sunday, Apr 16, 2006 at 13:49
ThreadID: 32931 Views:2041 Replies:5 FollowUps:11
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Govt to scrap rural petrol subsidies...WE get ripped again !

SMH Sunday 16th

"Petrol pump prices rose during Easter and the outlook for fuel costs is not going to get any better for regional areas as the federal government prepares to scrap a fuel subsidy scheme.

Rural communities currently receive a one to two cent a litre discount on fuel, and up to three cents in more remote areas, thanks to the scheme introduced by the federal government in 2000 to counter the impact of the GST.

The government now believes the $270 million it spends on the subsidy each year can be put to better use to improve country roads, and plans to cut the scheme on July 1.

Queensland will be the hardest hit by its removal and the state's motoring group, the RACQ, is fighting a rear guard battle to retain the subsidy.

The group's general manager for corporate relations Gary Fites said it was a classic case of "robbing Peter to pay Paul".

"We are all for more money going into improving our roads but we believe it should be genuine new money and not money diverted from something we believe has been a benefit to people in the bush," Mr Fites said.

"The government claims that the middle men have been pocketing the money but that's beside the point.

"The day that benefit disappears is the day the industry, in looking to maintain their margins at the very least, will raise its prices between one and three cents a litre."

Queensland state Labor MP Andrew Fraser chaired the Queensland petrol price committee, which unanimously called on the federal government to abandon the plan to axe the subsidy.

"We believe that given the GST will still be around come July 1, this program should be as well," he said.

Mr Fraser said if rural motorists were given the choice of improved roads or cheaper fuel, they would go for the latter.

"It's a no brainer," Mr Fraser said.

Meanwhile, the two major fuel retailers, Coles Myer Ltd and Woolworths Ltd, are getting ready to cop the flack when the subsidy ends.

Coles has about 600 fuel outlets under its alliance with Shell while Woolworths has approximately 470 Caltex-branded stations.

With the extra money needed to fill the car, consumers will have less to spend in the supermarkets and at the convenience stores that sit beside the bowsers.

JP Morgan Securities chief economist Stephen Walters said petrol at $1.26 per litre would suck an additional $8.75 from the weekly budget of the average household.

Assuming Australians do not cut back on the use of their cars there will be less cash available for other retail purchases.

"Spending an extra $9.00 per week on fuel doesn't sound like much, but there are eight million households in Australia," Mr Walters said.

"Extrapolating this additional burden across the whole economy means $543 million will be drained from retail spending in April, or more than three per cent of total retail spending, which was $17.6 billion in February."

If petrol prices reach $1.40 per litre they will bleed more than $700 million from monthly retail sales, or more than four per cent of total sales.

The Motor Trades Association, which represents 7,000 independent service stations, says operators will not be able to absorb the increase in costs when the subsidy finishes.

"With the end of this scheme we would assume any increase in prices will be passed on to motorists, which is unfortunate at a time when fuel prices are high," a spokeswoman said "
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Reply By: Willem - Sunday, Apr 16, 2006 at 14:37

Sunday, Apr 16, 2006 at 14:37
We'll be back to horses, camels or Shanks' Pony soon...lol
AnswerID: 167233

Reply By: Footloose - Sunday, Apr 16, 2006 at 15:39

Sunday, Apr 16, 2006 at 15:39
It sorta makes me wonder if the HR Nicolls Society are asking the question, "how low can they go ?"
I don't worry about myself so much as for my kids and the future of the country.
AnswerID: 167236

Reply By: Shaker - Sunday, Apr 16, 2006 at 15:44

Sunday, Apr 16, 2006 at 15:44
Funny how we whinge about $1.40 a litre for fuel, yet most will happily pay $2.00 or more for 600ml of water!
AnswerID: 167237

Follow Up By: Footloose - Sunday, Apr 16, 2006 at 15:46

Sunday, Apr 16, 2006 at 15:46
I've never HAD to pay for water. I DO have to pay for fuel.
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FollowupID: 422332

Follow Up By: Willem - Sunday, Apr 16, 2006 at 16:12

Sunday, Apr 16, 2006 at 16:12
Dunno where you live mate but water here in the sticks costs 44cents per 1000litres.....LOL. Out of bores, tanks and creeks its free!!!
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FollowupID: 422333

Follow Up By: Qlddisco - Sunday, Apr 16, 2006 at 18:29

Sunday, Apr 16, 2006 at 18:29
Shaker that name because your inside shaking up a martini , while the mrs buffs the four-b with bank notes ?
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FollowupID: 422358

Follow Up By: Truckster (Vic) - Sunday, Apr 16, 2006 at 18:34

Sunday, Apr 16, 2006 at 18:34
only a moron would pay for bottled water in the city!
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FollowupID: 422360

Follow Up By: Shaker - Monday, Apr 17, 2006 at 09:11

Monday, Apr 17, 2006 at 09:11
I re-read my post & couldn't see where I said that I paid for bottled water!
But, if as you seem to indicate you don't think thousands of people buy bottled "mineral water" then you must have your collective heads either in the sand or up your ****!
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Follow Up By: Truckster (Vic) - Monday, Apr 17, 2006 at 09:13

Monday, Apr 17, 2006 at 09:13
I re-read my post & couldn't see where I said that you paid for bottled water

and nobody else has said you pay for water either.
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FollowupID: 422446

Follow Up By: Footloose - Monday, Apr 17, 2006 at 09:50

Monday, Apr 17, 2006 at 09:50
"most will happily pay $2.00 or more for 600ml of water! "...Shaker didn't say that he personally would pay for water. And as far as I can see neither did anyone else. It shouldn't have been taken personally. He was just saying that water was more expensive if bought in a bottle. Fair enough.
My point was that I HAD to pay for fuel, I didn't HAVE to buy bottled water. Its the difference between optional (bottled water) and necessity (you have to buy fuel).
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FollowupID: 422452

Follow Up By: Footloose - Monday, Apr 17, 2006 at 09:57

Monday, Apr 17, 2006 at 09:57
You could just of easily said that a bottle of Chanel no5 costs a heck of a lot more than a couple of litres of diesel.
Obviously they have little in common, other than from my male point of view, both go a long way :)))
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Reply By: Ando79 - Sunday, Apr 16, 2006 at 16:54

Sunday, Apr 16, 2006 at 16:54
Rising oil prices, depressed spending, artificially low interest rates and record levels of personal debt.

Did someone say recession?

AnswerID: 167239

Follow Up By: Footloose - Sunday, Apr 16, 2006 at 16:57

Sunday, Apr 16, 2006 at 16:57
Not sure about recession but that lot gives me depression :))
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Follow Up By: Ando79 - Sunday, Apr 16, 2006 at 17:04

Sunday, Apr 16, 2006 at 17:04
Yep. Maybe we should invade some more terrorists harbouring oil rich countires.

Sorry, getting a bit carried away there. I'll shutup now.
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FollowupID: 422343

Reply By: Truckster (Vic) - Sunday, Apr 16, 2006 at 18:35

Sunday, Apr 16, 2006 at 18:35
Just face it, the average working human, no longer has a voice that gives a chit in canberra.

We will continue to be arse bleep ed until we offer to work for $1.00 like china, or one of them other rooted countries.
AnswerID: 167250

Follow Up By: Ando79 - Wednesday, Apr 19, 2006 at 17:09

Wednesday, Apr 19, 2006 at 17:09
Unfortunately, you are 100% right Truckster.
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FollowupID: 423060

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