Joint press release with Kelvin Thompson MP
Labor Shadow Minister for Regional Development, Kelvin Thomson, and the Member for Calwell, Maria Vamvakinou, have attacked the Howard Government for sitting on its hands while petrol prices in Sunbury have increased by an average 13% this year. 
Ms Vamvakinou said “Affordable fuel is critical to regional economies. Unfortunately the Howard Government has been asleep at the wheel while diesel prices have risen, for example in Victoria this year by 26%, and petrol prices have also skyrocketed.”
The increased cost of diesel is having a significant impact on production costs in regional economies, while the increased cost of petrol is a serious blow to regional motorists, who frequently have to travel long distances.
Australian Automobile Association data shows that average unleaded petrol prices in Sunbury were 86.9 cents per litre in December last year, and have jumped to 98.0 cents per litre by September, an increase of 13%.
The Howard Government has been way too relaxed and comfortable about these increases. They have reaped windfall gains in Excise and GST as a result – Excise up from $7,053m in 2001-2002 to an estimated $7,460m in 2004-2005, and GST up by one third from $1420m in 2001-2002 to an estimated $1900m in 2004-2005. The petrol price increases have also been doing the work of an interest rate rise – without the political odium.
Mr Thomson said “the Howard Government should be trying to help regional Australia by putting downward pressure on petrol and diesel prices. First, it should seek to solve international problems in oil producing countries such as Iraq, not inflame them.
Secondly, it should adopt Labor’s six point plan to reduce the power of the big oil companies, including amendments to the Trade Practices Act to guarantee independent wholesalers and retailers access to fuel supplies from the terminals of the major oil companies on fair terms. Thirdly, it should tackle our growing dependence on imported oil by harnessing some of our massive offshore natural gas reserves to produce liquid fuels capable of being used by Australian vehicles.”
