How can we reduce the cost of petrol?

  • By reducing the many taxes on fuel.
    • GST
    • Excise
    • Crude Oil Excise (or Royalties)
    • Petroleum Resource Rent Tax (PRRT)
  • By getting rid of the GST of petrol - It is an unfair and exacerbating tax.

    • Unfair - GST is levied on the excise, a tax in itself (38.600 cents per litre ).
      The GST on this adds 3.86 c to every litre of fuel.

    • Exacerbating - Every time oil prices go up the GST increases.
      When petrol was $0.84 the GST component was 7.6 cents.
      At today's price of 1.1820 the GST is 10.75 cents. That is 3.15 cents more in GST.
      The tax on petrol should be a fixed tax.

  • These two measures alone would take off nearly 9 cents per litre and the price fluctuations would not be as great.
  • By reducing our dependence on imported crude oil by using home-grown BioFuels instead.

How would we compensate for the loss of tax?

By introducing a tax on New vehicles whose fuel economy fails to meet certain guidelines.
This will give the manufacturers the incentive to produce fuel efficient vehicles.
The tax would only apply to new vehicles.
The tax would be gradual.
The more fuel efficient, the lower the tax.

In 5 to ten years time we would all be driving in more fuel efficient and less polluting cars.