Fuel Watch To Make Us Pay More! – National Nine News Exclusive Report…

It’s not normal for me to focus on a report from the news that really has no relevance to this site, however this is a major issue for all Australian’s and even the whole world with the ever increasing petrol prices. In addition fuel has no real direct affect to this site it has a direct affect on all its readers so I thought I might do something a little different on the back of this exclusive report from Laurie Oakes on National Nine News tonight.

The report revealed tonight that the National Fuel Watch scheme which will be implemented by years end will in fact do the complete opposite to what its intended purpose is. The governments own experts advised the Prime Minister and other key ministers in the government that the national program could increase the price we pay at the petrol pump. A leaked document to the Nine Network shows that four departments within the government, including the Prime Ministers own department opposed the implementation of the scheme or strongly advised against it.

The four key departments who were opposed to introducing the fuel scheme were as noted above the Prime Ministers department, the finance department, resources and energy department and the department of industry, all key departments when it comes to the smooth operation of this countries economy.

The scheme works by every service station around the country having to nominate what price it will sell petrol for 24 hours in advance. By doing so the price will be published on a special ACCC (Australian Competition & Consumer Commission) web site which will then enable drivers to check out how much they will have to pay in advance. The scheme has been in operation in the state of Western Australia for some years with mixed success.

The concerns expressed were that the scheme would result in increased costs on petrol stations, especially those independent ones which are needed to avoid us having to rely on the major fuel companies. The Prime Ministers department estimated that increasing costs to small businesses as a result would be $4,000 per year, adding to what the finance department estimates that the impact of all of this would fall heavily on independent retailers, and will reduce competition according to the resourced and energy department.

On the back of all of this it will be an interesting few days in Canberra and the first major mess-up of the new government, this will also no doubly be another key test to the leadership of Liberal leader Brendan Nelson. It is easy to understand and even predict the above estimates that the government has made and what impacts it will have on the future of fuel prices, in theory having this scheme in place is a good idea that the consumer can research the price 24 hours in advance. But this is not going to reduce the price we pay at the pump, how can it? What needs to be done is a reduction in the amount of tax that has to be paid to the government, the other proposal of removing the G.S.T. isn’t as effective either because that will be robbing the state government of its revenue source as that is where the G.S.T. revenue gets distributed to.

One thing is for sure thought and that is the fact of higher and higher petrol prices with no sight in end, Melbourne alone recorded its highest price ever today of 164.9 cents per litre.

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