Kevin Rudd feels motorists’ pain
June 16, 2008 by Alborz Fallah
Prime Minister Kevin Rudd says he understands that motorists are hurting because of rising petrol prices, an issue which he has discussed with people as he moves around the country.
Nonetheless, sympathy has not won any friends for the government. A recent Nielsen poll showed that 56 per cent of voters were dissatisfied with the PM’s handling of the petrol problem. 78 per cent also wanted the Government to take more action to bring fuel prices down.
Out of those questioned, two-thirds want the federal government to cut the tax on fuel – a move which the Coalition is supporting (despite year’s of opposition when in power). Only 22 per cent supported Labor’s FuelWatch scheme.
“(This) is why in this Budget there is a $55 billion support package for working families, which is why we have embarked on a course of action in relation to fuel efficient cars and which is why … we have developed a longer term policy paper on the question of fuel and energy policy for Australia,” he said today.
Mr Rudd again reassured motorists that fuel prices are not set by governments, but by global factors.
“This is a global problem, we have the greatest global oil shock in 30 years which is reverberating across every economy in the world but we have a plan going forward,” he said.
“I think we have always seen FuelWatch as … a modest measure to deal with greater power for consumers in a difficult environment, which is produced by a global oil shock,” he said.
“It’s one modest measure and we have never sought to describe it as much more than that – remember the savings that we indicated were possible under that were something like 1.9 cents per litre. What we are talking about worldwide are massive fluctuations in price, tens and tens of cents a litre brought about by this global oil shock.”
The Australian government is sending a representative to an emergency meeting of oil producers and consumers in Saudi Arabia this weekend.
Print it: 
if he felt the motorists’ pain he’d get rid of the fuel taxes !
i bet Australia are regretting voting for Krudd!
i wish hed stop sending our CNG supplies to China – we could just as well use them in our cars and trucks!
Ah, all I can say now is – I told you so!! Pitty we have few more years of him…
Don’t worry, the milky bar kid is out to save the world. Putting an end to nuclear weapons and getting rid of whaling….what next?
Nobody complained when the fuel price went from 49c per litre to $1.45 per litre during the Howard years, not to mention 10 or so interest rate rises and a howling pent-up inflation problem. Howard is secretly thankful he’s not there to cop the “rewards” of his mismanagement.
But all of a sudden it’s Rudd’s fault that prices have gone from $1.45 to $1.65.
All you numnuts with short memories need to go and learn to think.
Some of us (like me) have been through 4 oil shocks before, early 1970s oil $2 to $8 per barrel. Late 70s, $10 to $40 per barrel, big spike in 1991, and so on.
If you lamebrains who are squealing now can do simple arithmetic, you’ll see that at least twice it was a 400% increase.
The current surge is nothing like that, so get over it.
If government cut the fuel tax they will only increase taxes on something else, the only reason i can think of is that they slug us on petrol because we all depend on it.. same as all of life’s other necessities. If all of a sudden we started using public transport as much as we use cars then government will soon have a slice of that pie too… I’m no economic expert but its obviously one big vicious cirlce that runs our country if we like it or not.
Please dont tell me peopel actually think what govts in power really matters that much. Oil price are increasing due to foreign factors, nothing really to do with Australia (we are nothings on the world stage). And if you think they can just decrease tax on fuel, well no, we already have sky rocketing inflation, the last thing any govt with half a brain would do is reduce taxes and effectively stimulate an economy which is already spirraling out of control with debt because idiots are spending to much.
GOvernment will never reduce fuel tax, the price of fuel in unlikely to go down, so live with it. If you wnat to save fule get out of those 4 litre plus cars and into something using less fuel. Easy really.
“Kevin Rudd feels motorists’ pain”
oh rubbish
Reckless1, when was fuel ever 45c per litre under Howard? Given that when he came to power the excise was 44 cents per litre per i dont think your 45c claim can be taken seriously. Do you?
Just remember that cutting the tax on fuel was never on Howard’s agenda. If Liberal were still in power, the most they would be doing would be to allow those earning over 150k p.a. the ability to claim fuel as a tax deduction.
The Howard years are behind us (thank God!). Get over it!
yeah, fuel in most developed nations, where theres an actual demand… goes up consistently.
States are actually complaining a lot with the $4.10 per galon price.
Thats why its better to find alternatives and not rely on “oil” based resources period.
thats why I dont really buy the diesel is better replacement than hybrid… what? for like a year or 2?
Diesel will set you back $2 a liter by next year…. and its not a feasible and reliable fuel source for the 20 year outlook.
if the government decides to cut fuel tax the price of fuel wont change and oil companies will simply make more profit.
I look forward to hydrogen cars.
These polls just go to show that the average Australian hasn’t a clue on how the world’s economy works, and in this case the world oil economy.
I think people should be thinking themselves lucky that our dollar hasn’t tanked with the US dollar. If it did, then fuel wouldn’t be $1.60, it would be more like $1.90 or more.
Rudd can do nothing to influence the price of oil other than to try and reduce the demand for it, but by then we won’t need it as much :)
the first thing he did in govt was to increase the tax on diesel from 19.7 cents per litre to 21 cents per litre.
secondly, he put another tax on lpg to come into effect in a few years.
two fuel sources that are real alternatives to petrol – diesel in its economy and lpg with its plentiful supply and low cost; and all rudd wants to do is make them more expensive!
so far he’s been full of smug political spin and no decent action – the cost of living is getting worse and all he can do is add to it.
Jamison – the diesel bit has only a short term 10-15yrs benefit until something better comes along or more oil is discovered. All this fuel hype is absolute nonsense. Theres plenty of fuel to come out of the ground. Here in the UK we wer told the North Sea Oil production was at an end some ten years ago, but here we are today still producing 75% of our own oil requirements from the North Sea. Funny that someone ’suddenly’ discovered more.
does he pay his own fuel bill? does he take public transport to work everyday? Kevin doesn’t really feel the pain! if he can stop talking big and wide internationally but focus on improving life of people who voted for him. Fuel watch is another waster of tax-payer’s money. we pay tax to fund the fuel watch program to reduce the fuel price while fuel is heavily taxed. what a joke!
He doesn’t do any of these things, Weirluo. He’s the prime minister. John Howard didn’t do any of them, either.
No Name,
well… regarding the diesel comment.
Oil in general, there is still an abundance of it in North and South America. As some articles have pointed out, probably 100 years worth of oil… if you believe them. I’m sure there are some resource areas that have not been used, but the bottom line is, the automotive industry MUST introduce new concepts for powering your car.
If Hybrid or electric cars begin selling well in the next few years, then the research and development for that type of power source is increased and technology for it is accelerated significantly.
What is wrong with us can we stop complaining about cost of petrol.We blame the govt for everything who told you to get a home loan you cant afford,5 credit cards all to the limit,stop smoking,gambling,and drinking.Petrol would still be this price under Howard.Be responsible,live within your means and stop Bitchin.
What do you people expect? Stop criticising the Rudd government, he is trying to avoid subsidizing the petrol in order to keep inflation down. If inflation goes up because a high level of spending caused by this subsidy, than prices all over will be expensive, not just petrol
Aussies are too hard to criticise, Rudd is doing an awesome job so far, and has implemented key policies he promised he would.
That could never have been said for Howard.
Not Amused: Increasing the tax from 19.7 cents to 21 cents really made the price of diesel shoot up to $1.85 from $1.60. I think reducing that tax back to its previous level should save a lot of money for households around the nation.
You should run for parliament, you seem smarter than most of the pollies.
not amused…
Rudd did NOT place an extra tax on LPG that’s sceduled for around 2011, that was Howard.
Golfschwein, Gary etc…
Couldn’t agree more. The opposition didn’t drop the fuel tax and of course they say the Rudd goverment should do that now! Why wasn’t that done when GST was introduced back in 2000…
The tax is needed ultimately.
We spend too much and now complain we can’t piss money up the wall quite like we used too.
Budget and be repsonsible and you might just be able to afford more.
Reckless1,
Wake up, I agree with Dlr 1. You are a fool to say petrol price was 49 cent when Howard took over.
And as for the interest rate rises do you have a short memory as they first went down when he came along or did you forget that bit.
You must have been one of the ones that fell with there pre election crap that they could control interest rate.
Well isn’t funny that now he is in, even he has now said no government can control them.
Wake up they are as bad as each other with there big pay packets and super.
Golfschwein, Kevin is a PM, but so what?
a similar shit PM, using/wasting tax payer’s money, do u think he should be proud of it?. John Howard didn’t make you happy? yeah, Aussies, our PM is not that talented, but good at chasing tails of US and UK, can Australia PM make decisions withough asking his sugar daddy US or UK? NO, coz it desires the shit after the daddy’s path. Why I complain about fuel price? coz I pay tax to fund Kevin’s job. If you don’t agree with my opinion, so what?
Don’t buy fuel…!
Simple…
So what…
Gee people have selective memories don’t they.
Adam, YES the Libs DID reduce tax on fuel, effectively on several occaisions.
Firstly, when GST was introduced petrol went DOWN some 2 cpl, to (over) compensate for GST on excise.
Secondly, at least twice the Liberal govt suspended the annual CPI indexing of the fuel excise. KRudd had the same opportunity recently – no way did he do it, up it went.
And lets not forget that it was Australia’s worst ever PM, Paul Keating who actually introduced the annual indexing of the excise in the first place.
Interest rates, for my entire adult life, have always been higher under a Labor govt – fact of life. Also, all spending cuts to “my” industry have come from a Labor govt.
I hope the petrol price will keep rising to a high enough price for traffic congestion to ease. Bumper to bumper traffic congestion is getting worse.
Bret…
1.So in effect fuel prices in your opinion, can be controlled by the goverment in power at that time?
2.Interest rates are the only indicative factor to the health of our economy/affordability???
oh and by the way the LIBS left the current two taxes on fuel when GST was introduced, why didn’t they axe the second tax completely when GST was introduced??
Tony,
Thats great for city people who have access to and should use public transport.
Adam,
1. NO, only their take. The Libs did that. (Qld still does it!) Although Keating did lock us into world parity pricing.
2. NO. And my statement of fact didn’t alude to it eirther.
The Libs reduced the (Federal) excice by 6.3 cpl when the (State revenue) GST of 4.4 cpl was added. Petrol was immediately cheaper.
Mum, Dad & 2 kids average wage earners have always been better off under Liberal. KRudd is continuing the trend.
KRudd feels motorists pain. BS.
During the election campain, a juorno asked him how much it cost to fill up his car – and guess what? He could not remember when he last put petrol in his car let alone haow much it cost.
KRudd is out of touch and less than a year in, out of ideas.
1. There was two taxes on fuel under LIBS when GST became effective.
2. Why keep harping on about interest rates if it’s not the ONLY indicator of the health of our economy??
Interest rates can be quite irrelevant if you don’t take cost of food etc into account also…
Apparently Toyota were already going to make a Hybrid Camry in Oz.. Therefore if this is so I am sure most taxpayers/motorists would prefer the $35m to provide them with a bit of relief at the pump which they could do by abolishing the $0.40c a litre excise.
Not only that but I believe that the Govt just handed down a Surplus budget meaning they will receve more than they spend so yet again it would be nice if they spent a bit of that surplus on the roads etc
He feels our pain.. BS hes the A-hole inflicting it on us
I think they said in the media that 5 cent reduction proposed by Mr Nelson would equate to 2 billion less in govt revenue.
Unfortunately it’s only going to get worse for the average earner in Australia. Wages have gone backwards in real teams for average worker over the past 12 years and this is irrefutable.
Rudd has to keep the brakes on Wage inflation despite skilled labour shortage etc. Part of a Global economy where multinationals like Car manufacturers play each Country off against one another.
Living standards in developed countries will have to fall for the majority as China/Indian etc come on line and demand more of the worlds resources and a higher standard of living. The pie is only so big and these countries are now taking a bigger slice. Massive educated middle class in India providing cheap labour for Call Centres,Back of house processing, IT development/Architecture etc. Modern cheap telecoms makes it possible to place all these jobs in predominately English speaking India.
Lower labour costs in these counties will also eventually wipe out manufacturing in the West combined with cheaper operating environments i.e pump shit in the nearest river etc.
Climate change will reduce our Agricultural output over time as well.
Thank god for the mining industry!
The time scale of our demise roughly coincides with China A s rise in prosperity.
Ohh so K “Super” Rudd is going to save aussies by switching to a hybrid car fleet,and save the world by disarmament of nuclear weapons.WOULD SOMEONE TAKE THE CAPE OFF THIS GUY
How could he feel any pain. He does not pay for fuel or a car, and his wife is a multi millionaire. She could buy her kids a new car with the money she diddles from her empoyees.
CARADVICE STATE….”Out of those questioned, two-thirds want the federal government to cut the tax on fuel – a move which the Coalition is supporting (despite year’s of opposition when in power)”
NM RESPONSE….get over your comment. Era is not Howard anymore! Focus on gabfest on chairman Rudd engages in and see little follow through whereas he only symphasises with the public on petrol prices! LMAO
Reckless1 Says: June 16th, 2008 at 7:22 pm “Nobody complained when the fuel price went from 49c per litre to $1.45 per litre during the Howard years, not to mention 10 or so interest rate rises and a howling pent-up inflation problem. Howard is secretly thankful he’s not there to cop the “rewards” of his mismanagement”
NM response……seems like you have a memory like sawdust. Ten rate rises under Howard is not much when he was there for 11years. Its zealous zits like you who have a jaded view of things and are full of your own self importance. Inflation, employment and budget where kept at great levels……you are seeing a correction now as Crudd (i.e. the chairman master and gabfest king) is now having trouble keeping wages low as many areas are asking for massive pay increases and even a lower working week is being mooted (PERFECT INGREDIENTS TO TOSS INTO THE BREW OF INCREASED INFLATION). Obviously you leave out massive blocks of recall from that sieve enveloped in your brain and only see selective heaps!
I don’t know if you realise it but those of us in Europe would absolutely die for the Australian price of petrol. Australia is already pretty low when it comes to tax on fuel.
I paid the equivalent of $2.70 per litre of diesel to fill up my car earlier today. The last time I fill it before it’s sold and we move to Australia.
In Australia I’ll be damn grateful that I can drive a car that isn’t some nasty 1.6L diesel tractor and can drive something a bit more fun and still safe a bag load on fuel.
So really, gentlemen, a bit of perspective may not hurt here. I’m sure you’re all aware of how important it is to curb rampant petrochemical demand. Now all we need to do is stop China from subsidizing their fuel…
Have we bought a hybrid white elephant?
Retiring Labor senator George Campbell has taken a parting shot at the Rudd Government’s decision to provide Toyota with $35 million to build a Camry hybrid in Australia.
The former boss of the manufacturing workers union says the Government could be buying “a pig in a poke” with the Camry deal. In other words, Kevin Rudd has signed the deal in a hurry without really understanding what he’s getting.
“What disturbs me about it is that it seems to me we’re buying old technology,” he has told the The Sydney Morning Herald.
He has a point. The Camry hybrid we’ll get is based on the same technology as the current Prius, which is essentially almost a decade old. By 2010, both General Motors and Toyota are aiming to have much more efficient plug-in hybrids based on the latest battery technology.
So why has the Government been so keen to secure the deal? And why is it giving the world’s most profitable car company a $35 million hand-out when the company itself says it was going to bring the hybrid Camry to Australia anyway?
Add to that the fact that all the components for the hybrid drivetrain in the Camry will be imported from Japan, and the net worth to Australia of the deal begins to become a little dubious.
Senator Campbell suggests the generosity may be tied in with local manufacturing jobs more than genuine environmental concerns.
Toyota has been very vocal about the fact that its Australian manufacturing operation, including its export business, is looking less attractive to head office because of the high labour costs and the strength of the Australian dollar.
Senior management says the local operation’s biggest threat isn’t Holden and Ford, but other Toyota plants around the world. The company now has Camry plants in seven countries around the globe, including China, Russia and Thailand.
Was Mr Rudd’s decision more about keeping Camry production in Australia and less about delivering a greener future for Australian motorists?
After all, 10,000 hybrid Camrys, some of which are likely to substitute for Priuses, are hardly going to put much of a dent in our automotive industry’s global footprint, given that Australians buy one million new cars every year.
So do you think Senator Campbell’s on the money or is the Camry deal an important step towards a greener future for the Australian car industry?
Richard Blackburn
Posted on June 23, 2008 4:24 PM
AC Cobra, absolutely.
The hybrid camry deal is the same as fuelwatch – be seen to be doing something, without actually doing anything of any significance, soemthing that will fool the vast majority of (uneducated) voters that voted them in.
Then when it all falls in a heap they can cover their collective butts and say “look we tried”
There’s really nothing to whinge about if a car like the Holden Commodore continues to be the best-seller. It’s a fuel hog, among its numerous flaws.
Let’s just face it, fuel prices will keep rising, and no matter how good or honest a PM Australia may have, there’s no stopping this trend. It’s the world market that dictates everything, or maybe how many people are shot in Iraq. Oil supply is depleting and will eventually run. Hybrids still need to be made cheaper and at the moment, these are bought mainly for environmental purposes and not fuel saving (due to the high premium over a comparable petrol car). For now, it’s all about taking it easier on the pedal.
Juraj,
Thats fine, but when you have one political leader implying (and some individual candidates categorically stating) that they can, and will keep petrol prices under control and the TOTALLY FAILING to address the issues in any meaningfull way, we the motoring public have every right to feel ripped off.
KRudd and his team has completely dudded the Australian motorist. And will continue to do so until another election looms.