A Call To Raise Fuel Excise  

While the weekend's complaints about rising petrol prices have mostly included people carping about the need for the government to lower taxes on fuel, the WA Sustainable Transport Coalition has come out and recommended the opposite - raise taxes.

“The Automobile Association’s call for the Federal Government to lower fuel excise may help Australian motorists in the short term, but we face a long term problem, which excise reductions now will make worse” Dr David Worth, Convener of the Sustainable Transport Coalition said today.

“Australia already has the lowest fuel excise in western countries, after the US, and a lower rate would only encourage motorists not to change their driving habits, such as getting more fuel-efficient cars and making greater use of public transport, cycling and walking.”

"The STC proposes that the Government should RAISE the fuel excise to encourage Australian motorists to address the higher oil prices now, rather than later (see http://www.stcwa.org.au/papers/Oil_living_with_less.doc ). Our policies would leave Australia better prepared for the looming additional rises in oil prices to US$80-100 per barrel later in the year. At a national level, these need to include being better prepared with knowledge- establish a special committee of State and Federal Transport and Planning Ministers to prepare national and state options to address 'peak oil'.