etruck.com.au

It has happened, Queensland are to lose the Fuel Subsidy Scheme as of July 1, 2009 and the transport industry, struggling with increased costs and low levels of freight, gets another kick in the teeth. They should be used to it by now as the problems of the transport industry are normally well out of sight for the general voter and the issues affecting the industry don’t even constitute a blip on the radar for the general public.

The removal of the subsidy is going to put nearly 8.5 cents on a litre of diesel but it is also going to put the same amount on a litre of unleaded petrol to the normal punter. The Queensland Government is, obviously, willing to bite this particular bullet as they have just successfully manoeuvred their way through a state election and have nearly 3 years for the voters to forget about the fuel price hike.

In three years time the transport operators of Queensland will still be struggling with things like ridiculously low freight rates out of Brisbane and their customer base unwilling to be understanding about the increased costs or to countenance increased prices as a result of the increase in fuel prices.

According to Peter Garske, CEO of the Queensland Trucking Association the impact on operating costs for a transport operation is likely to be more like a 17 to 20% increase as a result of the loss of the fuel subsidy.

“The Queensland Premier has made a number of statements in the media over the last 24 hours in relation to fuel prices suggesting that there need be no more than a 6 cent per litre increase, such statements are extremely misleading and can only lead to the business of every Queensland trucking operator incurring additional costs, they are unable to recover,” he said. “The removal of the Subsidy can only mean that retail outlets will no longer receive the 8.354 cents per litre subsidy and will charge the trucking industry accordingly.”