Forget fuel subsidy, Bligh says, Qld doesn't need it

Queensland Premier Anna Bligh claims scrapping the 8.35 cent fuel subsidy has actually made fuel cheaper

By Brad Gardner | November 25, 2009

Scrapping Queensland’s 8.35 cent fuel subsidy means people now pay less for fuel, according to Premier Anna Bligh.

Defending the Government’s decision to end the subsidy earlier this year, Bligh has rejected Opposition claims the policy has increased transportation costs and put more pressure on Queensland families.

"In fact, there have been times when petrol here continues to be lower than other parts of Australia despite the new arrangements," Bligh claims.

"What we know is that Queenslanders pay similar or, in some cases, less fuel costs than other Australians."

According to terminal gate diesel prices from the Australian Institute of Petroleum and published by ATN, Melbourne has consistently been the cheapest region for fuel, followed by Brisbane and Sydney.

The Bligh Government decided to scrap the subsidy from July 1 despite not mentioning it during the state election campaign earlier this year.

In announcing the decision, Bligh claimed Queensland could not afford to pay the subsidy, which she said cost more than $500 million a year.

The Queensland Trucking Association (QTA) campaigned against the move, claiming companies with as few as six trucks could suffer a $15,000 jump in fuel costs without the subsidy.

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