Fed: Costello defends fuel excise at petrol price jumps

AAP General News (Australia)
04-12-2006
Fed: Costello defends fuel excise at petrol price jumps

CANBERRA, April 12 AAP - Treasurer Peter Costello has defended the federal government
excise on petrol as prices at the bowser hit $1.40 a litre.

"Australia has a very low excise but unfortunately we don't control the world oil price,"

Mr Costello said today.

He refused to speculate on how high petrol prices could go or whether skyrocketing
crude oil prices would impact on inflation.

"We're living through our third oil shock and the last two ended really badly for the
world and for Australia, so let's be vigilant to make sure the same thing doesn't happen
here," Mr Costello said.

His comments came as NRMA again accused oil companies of price gouging - this time
as motorists prepare to hit the road for the Easter long weekend.

As petrol hit $1.40 a litre in capital cities, NRMA motoring president Alan Evans said
the price rise at the pump was not linked to the ballooning cost of crude oil.

"What we can't see is a direct correlation between the price of crude and the price
at the pump," Mr Evans said today.

However, he cautioned motorists against taking out their anger on petrol station owners.

"We're saying don't take your anger out on petrol station attendants, it's not their
fault," Mr Evans said.

With price rises coming just days before families take Easter holidays, Mr Evans said
it was time for the Australian Competition and Consumer Commission to step in.

"It highlights the need for the ACCC to be given powers to increase their monitoring," he said.

AAP pv/so/br

KEYWORD: PETROL COSTELLO

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