Tuesday 3 June 2008

Cheaper petrol !

A fact of life - the Queensland government is not as greedy as the government of New South Wales. Petrol north of the border is 8.35 c a litre less than the bowser price in this state.

Queensland imposes a lesser tax regime on petrol and NSW residents holidaying there have been overjoyed at the price relief - but that is about to change. The Queensland government is making plans to restrict it's largess to bona-fide residents of the " Sunshine state ".

Soon motorists filling their tanks will need to swipe their drivers licenses past a scanner and if the Queensland barcode is not present - then neither will be that 8.35 c a litre discount.

It sounds a reasonable proposition. Why should one state subsidise drivers of another state who happen to have the misfortune to have a tightwad for a government ?

But there will be repercussions - and it will be many people and industries in New South Wales who will be the losers.

At present the New South Wales government implements a " rationalization " scheme on petrol prices in towns which straddle the Queensland border. A " special tax dispensation " applies to keep prices even and stop a rush over the border to fill up.

If NSW drivers are barred from cheaper Queensland petrol the need for this evaporates - and there is every chance that money hungry bureaucrats will drop the subsidy and apply full tax in border towns.

Of critical impact will be the disadvantage suffered by NSW registered trucks and truckies carrying freight into Queensland. If their competitors have an 8.35 c litre advantage on fuel costs then they can forget successfully competing in that market.

Of course, the lurks and perks industries will be gearing up to get around the problem. Computers and graphic artists will be churning out fake Queensland drivers licenses by the dozen - and truckies will be " borrowing " Queensland driving licenses from friends and relatives who live north of the border.

The move will create a new illegal industry - and Queensland law enforcement will be directed to preserve this state revenue source from exploitation.

It looks like the concept of this huge continent being a single country with basically similar laws is changing - and further down the track we may look a little more like Europe.

It is not a change for the better !

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