Queensland motorists to receive full fuel subsidy by Easter: Fraser

The State Government is committed to introducing a new scheme to deliver the full value of the fuel subsidy to Queensland motorists within the next eight months.

Treasurer Andrew Fraser today told State Parliament the government was in the process of now consulting with the fuel industry on two options for a subsidy card which would see the subsidy delivered to motorists at point of sale.

“We want to ensure the mechanism for delivering the subsidy to Queenslanders is the most efficient and practicable,” Mr Fraser said.

“We are now consulting with industry – the retailers, motoring groups, industry organisations and the bulk-end users - on the best way to take the proposal forward.

“Whichever model is ultimately adopted, there will be an automatic entitlement and automatic issue to Queenslanders, free of charge.

“In accordance with constitutional requirements, motorists with interstate licenses or registrations would need to apply and pay an administration fee to access a subsidy card.

“The government’s plan will ensure that motorists will witness the full 8.354c per litre being deducted with each sale.

“They will receive a sales receipt at the point of sale which will list the unsubsidised price, the deduction of the subsidy and the net price for the fuel.

“This plan has been introduced for one reason – to ensure that petrol remains cheaper for Queenslanders.”

Under the government’s plan, fuel retailers will be required to advertise the unsubsidised price on price boards and bowsers.

Retailers will then reduce the price at the point of sale by the amount of the subsidy on presentation of a subsidy card – similar to the way in which existing shopper docket schemes operate.

Mr Fraser said the government is consulting with industry about two options for the subsidy card.

“The first option we put forward is for Queensland drivers licenses to have a bar code sticker attached, with a view to having the bar code incorporated in the new Queensland drivers license.

“We are also consulting on an alternative mechanism, which would involve a separate subsidy card issued on the basis of registration.

“The registration model has particular advantages in assisting with compliance operations.”

Mr Fraser said the new subsidy delivery scheme is expected to cost $20 million.

“But that’s necessary to ensure the full 8.354c per litre subsidy – the full $570 million each year - is being passed on to consumers.”

Media Contact Chris Taylor 0419 710 874