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Fuel cost in bush a scandal
By Political Reporter SAMANTHA MAIDEN in Canberra
31jan02
The Advertiser
REGIONAL Services Minister Wilson Tuckey is seeking legal advice over the cost of petrol in country areas, describing the situation as a "scam" and "scandal."
He said yesterday it was his No. 1 priority to improve the situation.
Signalling his plans to raise the contentious issue in Cabinet, Mr Tuckey said he failed to understand why the cost differences were so stark.
"I find it a scandal on my own inquiries. And I used to be in the trucking industry," he said.
"It is a major priority for me to remove the price differential.
"Fuel can be be delivered by road around Australia at anything over, say 50km, at 0.5c a litre per 100km."
The Federal Government is conducting an inquiry into the taxation of fuel after the decision to abandon automatic fuel indexation.
The abandonment came with a wave of protests over GST-generated price rises.
A call for public submissions last year prompted a flood of complaints from rural and regional consumers.
They were angry about consistently higher prices.
Despite the concerns, former industry minister Nick Minchin ordered the inquiry must recommend "revenue neutral" solutions.
That meant the level of petrol taxation now must be reduced.
Australia's top consumer watchdog, the Australian Competition and Consumer Commission, is conducting a separate inquiry into fluctuations in petrol price.
It is expected to recommend the introduction of terminal gate pricing, ensuring country consumers are better informed about the wholesale cost of fuel to retailers.
The information then would be used to more accurately assess claims of the additional costs of transportation to country areas.
The latest statistics, however, confirm the price of petrol has fallen in the last year with a drop in world prices.
Mr Tuckey will raise his concerns in a submission to Cabinet this year.