AUSTRALIA’S FUTURE TRANSPORT FUEL MIX POLICY IS THERE ONE?

AUSTRALIA’S FUTURE TRANSPORT FUEL MIX POLICY – IS THERE ONE? BY BRYAN NYE Executive Director Australian Institute of Petroleum Due to its geographical nature Australia is a highly transport dependent society: we love the motor car. Despite significant efforts to promote the benefits of public transport, its use has declined while the affordability of motor cars has continued to improve and car ownership and use are rising. Consumers want affordable and safe cars, cheap fuels, ample parking, congestion free roads and environmentally friendly vehicles as long as they don’t have to pay for it. As a community they are hyper sensitive about petrol prices and as we have seen a few cents a litre rise at the petrol pump can cause politicians to become weak at the knees. Conversely Governments both Federally to the tune of $12.5bn pa through excise and States through GST receipts of $2.7bn pa are keenly aware of the revenue generated from petroleum products.

What therefore has driven the current fuel mix policies of Government? Is it the need for revenue through the imposition of fuel taxes or is it a rational strategic focus of what fuel mix suits the future transport needs of the motorist and community.

Back