Fed: Cutting fuel excise by five cents costs $1.7 billion: PM

AAP General News (Australia)
08-23-2000
Fed: Cutting fuel excise by five cents costs $1.7 billion: PM

CANBERRA, Aug 23 AAP - Slicing fuel excise to cut petrol prices by five cents a litre
would cost $1.7 billion, Prime Minister John Howard said today.

Mr Howard said the cost of petrol was dictated by the world oil price, which had risen
from $US12 to $US32 a barrel in 18 months.

"There has been an enormous increase in the world price of oil and there is nothing
that we can do ... to control the world price of oil," Mr Howard told Perth Radio 6PR.

He said even Opposition Leader Kim Beazley had conceded that.

"The only way we can bring the price down is to cut the excise because that's the tax
we get," Mr Howard said.

"If we cut the excise the money has got to come from somewhere.

"If you wanted to cut the price of petrol by five cents a litre ... that would cost
$1.7 billion a year."

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KEYWORD: PETROL HOWARD

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