Latest Econtech Model Shows Petrol Prices Will Rise By 2 Cents/Litre
Following the implementation of the New Tax System (NTS), Econtech, the company which prepared the Shopping Guide for the ACCC, has released a revised report which shows petrol prices will rise almost 2 cents/litre.
The modelling is based on the average price of petrol in Sydney for June which was 88.7 cents/litre. Petrol prices will rise by 1.2 cents/litre by the end of this year and by 1.9 cents/litre by the end of 2001 as a result of the New Tax System. Even over the long term prices remain above current levels.
According to the latest Econtech report, savings from the local oil industry ie: from refining, wholesale, transport and retail margins are estimated at 0.2 cents/litre in the short-term, rising to only 0.6 cents/litre in the long-term. This compares with supposed Government estimates of 1.5 cent/litre which have been used to justify the tax increase on petrol.
Apart from highlighting rising petrol prices, the latest research suggests that the Government will collect an extra $300 million from motorists in a full year by increasing the tax on petrol by 1.5 cents/litre. Indexation of excise in August this year and February next year will increase the tax even further.
The Government has also promised to reduce road funding by $350 million in the year 2000-01 so that motorists are getting a raw deal at both ends. The latest Econtech research is available on the AAA website at www.aaa.asn.au.