Oil levy hike adds another cost

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The recent Federal Budget contained a hidden sting for heavy vehicle operators.

You may be aware that the Commonwealth operates a program called Product Stewardship for Oil (PSO) to encourage environmentally-sustainable management of used oil.

Under the program, a levy is collected on all petroleum-based oil or their synthetic equivalents produced in or imported into Australia. This levy funds recyclers of used oil.

Buried deep in the Budget papers was an announcement that the PSO levy would be increased by 5.7 cents from 1 July 2023, rising from 8.5 cents to 14.2 cents per litre for specific oils and greases.

The Government is increasing the duties to “make the scheme more sustainable”.

While the dollar amount is small, this is a 67 percent increase and another cost that must be recovered from customers.

NatRoad expects the rise to take effect from 1 July 2023 – but only after it is passed by the Parliament. Existing legislation needs to be amended and this has been referred to the Senate Environment and Communications Legislation Committee for inquiry.