Motorists to feel fuel tax rise in full
The states peak motoring organisation has rejected the Premiers suggestions that petrol and diesel prices should rise only six cents a litre despite the Government having added another 9.2 cents in tax.
"Regardless of whether oil companies or others in the fuel industry have been 'capturing' part of the subsidy, the cold commercial fact is that retailers will seek to maintain their current margins," said RACQs general manager for external relations, Gary Fites.
"To do that, they will pass on all of the extra tax to their customers."
Mr Fites said the full impact of the tax hike on diesel prices would be immediate across the state from midnight, as it would on petrol prices outside south-east Queensland.
"Because Wednesday is the cheapest day of the south-easts weekly petrol price cycle, unleaded and premium unleaded prices in the region should rise by something less than nine cents a litre tomorrow," he said.
"But once the weekly discounting starts coming off tomorrow afternoon, motorists in the south-east will get a better appreciation of the ongoing hit to their pockets from the Governments decision to scrap the subsidy."
Based on current price trends, the RACQ expected unleaded petrol to retail at around $1.20 a litre in the south-east tomorrow, compared with $1.11 had the extra tax not been applied.
"At the peak of this weeks cycle expect to pay $1.30 or more," Mr Fites said.
"With diesel already on an upward trend, we can expect to see its price above $1.26 in major centres immediately the subsidy comes off."
Mr Fites said the RACQ shared the State Governments concerns that some fuel industry operators might try to use the fuel tax change as a smokescreen to increase their margins.
"As usual, RACQ will be watching price trends closely," he said.
"But we can already confidently predict a 9.2 cents a litre tax gouge from the State Government not only this week but every time Queenslanders fill their family cars."
