Fuel subsidy loss will cripple local truckies
TRUCKING company director Reg Mills fears local operators will be ruined if the State Government carries out its plan to bin the Northern NSW fuel subsidy in July.
Mr Mills, of Mills Transport, said local livestock, milk and cane carriers would be hardest hit.
The Australian Trucking Authority has warned it would force NSW trucking companies to increase their freight rates or reduce their margins to stay competitive with companies in Queensland.
“It will have the most effect on those that operate locally because they won't have access to the Queensland fuel subsidy,” Mr Mills said.
“It will increase the cost of fuel by up to 8.5 cents a litre, a cost to the individual and eventually a cost to the community as it is passed on to consumers.”
The State Government currently pays a fuel subsidy in Northern NSW to ensure that fuel sellers can compete with the subsidised price of fuel in Queensland.
The subsidy ranges from 1.67 to 8.35 cents per litre. But in the mini-budget, it was announced it would be abolished from next July.
Mr Mills said it would add up quickly, with B-double truck drivers clocking up about 4000 kilometres a week, at one litre of fuel every 1.6km.
“In the past 18 months a considerable number of operators have got out because of costs, new regulations and driver shortages. This is just another one for the mix,” he said.
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