A predicted drop in the carbon price is set to save trucking operators more than 3 cents per litre in fuel
May 15, 2013
A predicted slump in the price of carbon is expected to save trucking operators more than 3 cents per litre on the price of fuel when Australia moves to an emissions trading scheme.
Trucking is due to pay an extra 6.85 cents per litre for fuel from July 1, 2014 when a $25.40 per-tonne carbon price takes effect.
However, Budget papers forecast the price of carbon will be $12.10 when the tax moves to an emissions trading scheme the following year.
The price drop equates to about an extra 3.26 cents per litre for fuel and stems from Australia’s decision to link its scheme to the European carbon price, which has plummeted in recent times.
The Federal Government ignored calls from the Australian Trucking Association (ATA) to exempt trucking from the tax. ATA CEO Stuart St Clair believes the decision will cost the industry $510 million in 2014-15.
“More than 70 percent of trucking businesses have only one truck. They don’t have the market power to pass the tax onto their customers, they run on very tight margins, and they generally don’t have the option of switching to renewable fuels,” he says.
St Clair says emissions trading will lead to uncertainty in future years for operators because they will only be given three weeks’ notice of each price change.
