Taxis brace for added costs as new tax to drive up price of LPG

csv8 · 01-12-2011, 10:20 AM

Taxis brace for added costs as new tax to drive up price of LPG

by: Robyn Ironside From: The Courier-Mail December 01, 2011 8:11AM

AUSTRALIA'S cheapest fuel will start creeping up in price from today thanks to a new Federal Government excise on LPG.

The 2.5 cents a litre excise will double to five cents a litre from next July, then increase by 2.5 cents a litre annually to a maximum of 12.5 cents a litre by July 2015.

The extra impost is expected to hit the taxi industry the hardest with the majority of cabs converted to LPG.

Steve Spalding from Queensland's peak motoring body the RACQ, said motorists who use LPG can expect to pay an extra $2 a litre when filling a 75-litre tank.

"Over a year, it could mean hundreds of dollars for motorists in regional areas and in the outer suburbs who often drive hundreds of kilometres each week," said Mr Spalding.

"This new tax is yet another example of the Federal Government milking motorists."

Canberra expects to receive an extra $518 million over four years by taxing LPG and other gas fuels.

Mr Spalding said the RACQ would not have such an objection if the government allocated all of the revenue it gained from fuel taxes to building roads.

"The government rakes in around $13 billion from motorists in fuel taxes every year, but only half of that goes back into funding roads," he said.

"The implementation of this new tax further emphasises the need for the Government to use this revenue for the benefit of motorists, through funding the building and maintenance of our road network."

The government excise on petrol and diesel fuels is a whopping 38 cents a litre.

Smoke Pursuit · 01-12-2011, 10:26 AM

The EcoLpi cars are going to start to lose their appeal now..

Ford should have made Falcon with the Diesel.... :S

FPV8U · 01-12-2011, 10:30 AM

Quote:

Originally Posted by csv8

Steve Spalding from Queensland's peak motoring body the RACQ, said motorists who use LPG can expect to pay an extra $2 a litre when filling a 75-litre tank.

Jeez.. and i thought BP Ultimate had been getting pricey

**Professor Farnsworth** · 01-12-2011, 10:31 AM

well LPG was always going to go up. Not sure if this is a 'new tax' or just an increase on the excise that has been held back for quite a while.

Either way, crap news for me. And taxis.

**Professor Farnsworth** · 01-12-2011, 10:31 AM

Quote:

Originally Posted by FPV8U

Jeez.. and i thought BP Ultimate had been getting pricey

i know hey, pretty rich!

article fail

mik · 01-12-2011, 10:40 AM

will diesel for cars take a hit when the carbon tax comes in? i`d put money it that it will down the track, trucks carting the stuff are going to take a hit, so everything else Must go up as a consequence , the eco lpi will still look good i think,
you have to wonder though, if the idea is to cut pollution , surely the cleaner fuel as an incentive should not be penalised?

**GasoLane** · 01-12-2011, 10:46 AM

Quote:

Originally Posted by csv8
Steve Spalding from Queensland's peak motoring body the RACQ, said motorists who use LPG can expect to pay an extra $2 a litre when filling a 75-litre tank.

Quote:

Originally Posted by FPV8U

Jeez.. and i thought BP Ultimate had been getting pricey

Typo I think. They probably meant to say $2 a TANK.

Either way LPG is still going to be a lot cheaper than petrol

Wretched · 01-12-2011, 10:55 AM

Quote:

Originally Posted by mik

will diesel for cars take a hit when the carbon tax comes in? i`d put money it that it will down the track, trucks carting the stuff are going to take a hit, so everything else Must go up as a consequence , the eco lpi will still look good i think,
you have to wonder though, if the idea is to cut pollution , surely the cleaner fuel as an incentive should not be penalised?

Apparently not.

Quote:

There will no carbon price on petrol or diesel for passenger cars and other light on-road vehicles.

http://www.cleanenergyfuture.gov.au/...put-on-petrol/

Though that is not to say prices won't just rise accordingly ;)

**redxm** · 01-12-2011, 11:10 AM

Taxis will just increase their fares, as they do every July anyway
But, yep it stinks and as far as i can see is just another money grab from govco

Road_Warrior · 01-12-2011, 11:11 AM

Meh, it will still be half the price of petrol.

EFFalcon · 01-12-2011, 11:12 AM

meh, LPG will still be under 1/2 the cost of ULP in Melbourne anyway.

**Polyal** · 01-12-2011, 11:13 AM

And PULP will remain stagnant I am sure....

flappist · 01-12-2011, 11:19 AM

Quote:

Originally Posted by Wretched

Apparently not.

http://www.cleanenergyfuture.gov.au/...put-on-petrol/

Though that is not to say prices won't just rise accordingly ;)

Ah yes but there was not going to be a carbon tax at all.......

When money is involved they all tend to lie a lot.

The 15c/l cap is another that I suspect will not be honoured with the chance that it will be kept being indirectly proportial to the square of the people using it.

Fev · 01-12-2011, 11:34 AM

Great more taxes and bad news.. Its getting a bit old isn't it. Where is all the good news gone?

pottery beige · 01-12-2011, 11:40 AM

Quote:

Originally Posted by Fev

Great more taxes and bad news.. Its getting a bit old isn't it. Where is all the good news gone?

ummmm...... .......... ..

|Nate · 01-12-2011, 11:53 AM

How disappointing, must be to pay for this.

I wouldn't be surprised if LPG eventually got to $1/Litre with the excise being similar to petrol and the government going

"I dunno what happened?!?!"

**Professor Farnsworth** · 01-12-2011, 11:56 AM

Quote:

Originally Posted by Road_Warrior

Meh, it will still be half the price of petrol.

Quote:

Originally Posted by EFFalcon

meh, LPG will still be under 1/2 the cost of ULP in Melbourne anyway.

yeah but LPG burns considerably quicker than ULP so the margin will be narrower than just half.

XRtowcar · 01-12-2011, 12:10 PM

Bugger, its going cost me $1.20 extra everytime i fill up taking the cost of tank to $26.60 for 340k's.

**Professor Farnsworth** · 01-12-2011, 12:17 PM

Quote:

Originally Posted by XRtowcar

Bugger, its going cost me $1.20 extra everytime i fill up taking the cost of tank to $26.60 for 340k's.

that figure varies for different people you understand.

besides a dollar saved is a dollar earned. Any extra expense, anywhere, even $2 makes saving for things harder. We fill up twice a week, so an extra say $3.20 a week, adds up to an extra $166.40 a year that could have gone into savings.

EFFalcon · 01-12-2011, 12:19 PM

Quote:

Originally Posted by Professor Farnsworth

yeah but LPG burns considerably quicker than ULP so the margin will be narrower than just half.

I'm not denying that, my point was, its still cheaper.
and for the newer more efficient systems this is even less of an issue.

leighm · 01-12-2011, 12:20 PM

I think the point of concern is not whether or not it is sill cheaper to use LPG, but rather that we are being taxed more money. An extra $1.00, or $2.00 or whatever is more money not in our pockets and in the hands of people who don't take nearly as much care of it as we do when we have earned it.

EFFalcon · 01-12-2011, 12:23 PM

get used to it.

this 'tax' has been a long time coming, we knew about it years ago.

350125GO · 01-12-2011, 12:32 PM

Wasn't this introduced by Howard way back when? Either way, its not really going to add much in the scheme of things. Once we get out of this global slump (heh) fuel prices are going to shoot through the roof.

**Professor Farnsworth** · 01-12-2011, 12:45 PM

not sure if it was Howard era or earlier.. It's been in the pipeline for a long time.

**Professor Farnsworth** · 01-12-2011, 12:46 PM

Quote:

Originally Posted by EFFalcon

and for the newer more efficient systems this is even less of an issue.

yes, if only i had one!

|Nate · 01-12-2011, 12:50 PM

Good ol' Herald Sun for this image:

davenl5l · 01-12-2011, 12:55 PM

tax was brought in 10 years ago by john howard and delayed 10 yrs.call me a synic but not long after they brought in the lpg rebate.now we know how they will recoup those cost's liberal,labor...all the same anyway!!

**Professor Farnsworth** · 01-12-2011, 12:56 PM

the rebate has been falling off for years on a staggered scale, i believe it's around $1250 now, haven't checked in a while. They're also limiting the amount of rebates permitted per year due to funds going to QLD disaster relief etc etc. So if the number has been reached, you could wait a year before getting a rebate.

Ben73 · 01-12-2011, 01:04 PM

But why. Did they figure out LPG is bad for the world, so now they are saving the world by taxing it.

Rodge · 01-12-2011, 01:36 PM

LPG isn't taxed in N.Z. but its $1.30 per litre because we don't have much of it and there's expensive Gas to LPG conversion involved.

Cheer up guys, the new LPG Falcon still looks like a real no brainer to me.
If I could get LPG for the prices you guys paid I'd be into one in a flash.