June 11th 2009 - NatRoad Opposes Abolition of Queensland’s Fuel Subsidy Scheme

The abolition of the Queensland Government’s Fuel Subsidy Scheme from 1 July 2009 is vigorously opposed by the National Road Transport Operators Association (NatRoad) Incorporating Australian Road Train Association, NatRoad President Rob McIntosh said today.

“Despite assurances from the Queensland Government that the Fuel Subsidy Scheme would be retained, the scheme’s abolition will result in a direct cost impost to NatRoad members of approximately 9.2 cents a litre,” Mr McIntosh said.

“This direct cost increase must be passed on to ensure the viability of those trucking operators affected, and will obviously increase freight prices, which will ultimately result in higher prices for consumers.

“The Queensland fuel subsidy scheme has always permitted the road transport industry to pass on considerable savings to consumers and businesses in Queensland through reduced freight charges.

“The action by the Queensland Government will have detrimental consequences for the state’s economy through increased freight costs in this physically large and road transport dependant state. This will certainly negate any direct savings from the abolition of the Fuel Subsidy Scheme.”

In a recent submission to the Queensland Government NatRoad highlighted the fact that in relation to the fuel subsidy within the Queensland context, the road freight sector carries some 39 billion tonnes/kilometres freight (Australian Bureau of Statistics).

“Our calculations show that with a typical articulated heavy vehicle travelling on average 93,200km (ABS Survey of motor vehicle use) per year and utilising 54.6 litres of diesel per 100 km, the result is savings to Queensland business and consumers of $4251 per year.”

NatRoad will continue to oppose the abolition of the Fuel Subsidy Scheme, and encourages all its Queensland members to complete the e-petition against fuel tax subsidy abolition on the RACQ site at:
http://www.racq.com.au/promotions/fuel_tax_subsidy_petition