Federal opposition leader has dubbed the government’s controversial FuelWatch plan as “FoolWatch” as Prime Minister Kevin Rudd hints at a possible double-dissolution election.
The opposition are preparing to block a number of key Budget measures in parliament in a move that could force an election as early as late 2009, one of which is FuelWatch.
Implementation of the FuelWatch scheme would see petrol stations forced to provide their next day price 24 hours in advance. Motorists would then be able to compare prices in their area via a website or by calling a hotline service.
Adding to the new government’s woes is a leaked Cabinet document, written by Minister for Resources Martin Ferguson which argued that FuelWatch may not reduce the price of petrol. The opposition believes it will actually drive up the price of fuel and this argument is supported by online fuel monitor MotorMouth.
In support of FuelWatch the Government is maintaining that research conducted by the ACCC (does anyone listen to them anymore?) at the request of the Howard Government suggests that implementing FuelWatch will cut the average price of petrol by as much as 1.9 cents per litre.
Unfortunately, FuelWatch has proved to be anything but the saviour of the average motorist in Perth. Introduced by the Liberal government in WA, petrol prices under FuelWatch have remained stubbornly high. In fact, a three month survey spanning early February to late April this year showed that the average weekly price of unleaded petrol in Perth was generally higher than in Sydney and Melbourne for all but three weeks.
Nelson has challenged the Prime Minister to “get out of the way and give the job to someone who can” do more for Australian families. Labor recently rejected Nelson’s plan to cut fuel excise by 5 cents per litre, while Labor are said to be considering removing the GST that is currently collected on the excise component of fuel (currently a tax on a tax), a move that would be likely to save motorists 3.8 cents per litre but don’t hold your breath.
As our politicians squabble over a few cents per litre what is expected to happen to fuel prices in the future? Well, the Australian Bureau of Agriculture and Resource Economics are being optimistic and suggest that oil prices in real terms will halve by 2013. With prices currently at $US133 per barrel they are expecting the price to ease to $US67. The big question is will the oil companies who have never known more profitable times follow suit…?
[Source: HeraldSun]
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Maybe he should have a committee with everybody again…..that way he can say I listened and I acted and did SFA about real possibility of raising GST, controlling interest rates, household costs, petrol prices and by his own admission…………I CANT EASE THE BURDEN ANY MORE AS DONE ALL WE COULD.
This guy is a joke and will be around not long as the ALP members will circle his “summit” style meeting mentality! WHAT A WALLY!
He started like a modern day Bon Jovi rocker going on his world tour junket and air blew out of sails 6months in!
As a Perth motorist myself, I can confirm that fuelwatch is totally powerless to maintain fuel prices at the real retail price. The fuelwatch service itself is handy though, to monitor the lowest prices in the area you choose, but what is really required is:
- removal of the fuel excise
- removal of GST on fuel (by the way, ‘fuel’ means ULP, LPG, Diesel, and others)
- make fuel prices fixed by law in relation to Average weekly earnings, or the CPI, that is, the profit margin on fuel products must not exceed, eg: fixed %’ge of AWE, like .3% or sumthing
the problem is the oil companies will continue to rape its customers until there is regulation in the industry.
Not that difficult, really…
I just wish people would stop going on about the “tax on a tax”. Are peoples memoris that short or just politically blinkered.
Remember the fuel excise was reduced by about 6 cpl before the (then) 3 cpl was added by GST.
And don’t forget the Libs didn’t do the CPI indexing of the fuel excise for their last 2 years - did KRudd forego the CPI indexing at a time when “working families” were hurting the most? No damn way.
LOL Brett…..u have heavy smoked filled lenses on your reading glasses clouding your recall.
NM,
I don’t quite understand what you mean.
I think that if KRudd is serious about”working families” he would remove ALL of the GST from fuel.
That way everybody pays the same pump price rather than plebs paying full price and the “company car brigade” paying pump price less GST. (And with tax free dollars too).
Working families hurting the most is now BRET
Removing tax will never happen, Fuel prices will continue to rise but more slowly. Petrol still $2.70 here (UK) no increases despite higher crude prices.
NM,
Nope it’s no now, not yet. The pain will still get worse the longer KRudd is in control
Perhaps you missunderstood my earlier comments.
KRudd could and should have skipped indexing the fuel excise, but didn’t (when the Libs did at least twice).
A number of petrol stations are planning to fit LCD TVs to the top of the petrol pumps,, on which they will show adult movies so that motorists can watch other people being screwed at the same time they are
Bret,
Mate I agree as easy to see its happening. I thought you meant it was worse under Howard!
Why not get rid of the excise all together.. The Govt could afford it I mean didn;t they just hand down a $22m SURPLUS budget? which means they’re
over-taxing.. us so surely we deserve some relief
Not only that but I believe they are breaking the law as under the tax act its illegal to tax a tax which is exactly what they’re doing by imposing GST on the excise
So is that Bret from another site…………..?
tax a tax…..hmmmm interesting. yes. ok! I see
Yeah BM, Bret was arguing with Dingo.
How did he finds us? How do we tell everyone else without telling the dog we have moved?
Fuel watch??????? So they watch it and thats it…….they report the best prices over the radio every morning in the Burbs………….big deal!
The govt won’t do anything about it nor will the opposition [when they get in power] because both sides of parliament are heavily funded by the petrol companies … which is why the public transport systems in nearly every state is a complete shamozzle
Too right MISSILE…..took lots of cleverness to devise such a cunning plan (NOT). People actually voted for this dipstick
Comment by Bavarian Missile on 29 May 2008:
“How did he finds us?”
HaHa BM I googled “Bavarian Missile” and it wasn’t hard to find.
Personally I wouldn’t be trying to tell others, or the “Dog” will find it too.
Did you check out the video I posted on the Fastest Backhoe thread?
I agree with that the fuelwatch service itself is handy. check this http://www.fuelwatcher.com.au/ is very unique and useful.