Put 10c A Litre Tax On Drivers: Caltex

[f-wolf]

July 14, 2007

PETROL prices would rise by 10c a litre to cover the cost of carbon under a plan by Australia's biggest oil refiner as part of its response to the greenhouse debate.

Caltex wants the Howard Government to impose a $40-a-tonne carbon fuel tax on motorists rather than make the retail fuel industry adopt a complicated emissions-trading system.

By having the Government levy the carbon tax on motorists, the company would avoid the odium of being forced to raise prices to cover the cost of the permits that would be issued under the more complicated emissions trading scheme.

The 10c-a-litre carbon tax would avoid the petrol price fluctuations associated with the carbon pricing in emissions permits. In Europe, the cost of the permits has fluctuated wildly as the market in carbon rises and falls.

The proposal by Caltex, which accounts for about 30 per cent of the nation's transport fuels market, would result in the Government raising up to $3.9 billion a year from users of petrol and diesel.

Caltex will contact all federal and state politicians about its plan next week. Managing director Des King said yesterday a direct tax on fuel users would be far more effective than a cap-and-trade emissions scheme in bringing home to consumers the cost of carbon emissions.

In the 2001 election year, John Howard was forced to cut fuel excise by 1.5c a litre because of the public backlash over high prices.

Mr King says Caltex supports national initiatives to reduce greenhouse gas emissions by 2050, and is proposing a carbon tax on fuels involving a national pricing mechanism for controlling emissions.

Caltex accepted the science behind global warming, he said, particularly the reports of the Intergovernmental Panel on Climate Change, which maintain that increased temperatures in the past century were probably caused by greenhouse gases in the atmosphere as a result of human activity.

The company was advocating a broad approach to cutting emissions, recognising that there were many options.

Mr King said the goal of reducing carbon emissions by 2050 should be adjusted from time to time on the basis of the best available science.

"We believe a long-term aspirational goal for emissions reduction is important," he said.

"It demonstrates we accept climate change is a serious issue and our business is likely to change."

Emissions trading aims to reduce greenhouse gas pollution by providing economic incentives for reducing emissions. In a cap-and-trade system, a central authority sets limits or caps on each pollutant. Operators that intend to exceed the limits have to buy emissions credits from other organisations that can stay below their designated limits.

Under the Caltex proposal, its refinery operations would be subject to the cap-and-trade emissions scheme the Prime Minister has said Australia will be operating by 2011. But retail sales would attract a tax to go directly to government coffers.

Mr King said it would be up to the Government to use the revenue for national greenhouse gas emissions reduction programs, rather than put it in general revenue.

The company says imposing a carbon tax on transport would avoid the huge financial risk of having to purchase more than $1billion in emissions permits for customers, and having to recover the cost through the market.

Caltex says it emits about two million tonnes of carbon dioxide a year, mostly from its oil refineries at Kurnell in Sydney and at Lytton at the mouth of the Brisbane River.

[Falchoon]

Then the Govt will add GST on top of that for yet another windfall.

[SCRIBR]

how the f*ck does this emmisions trading crap work?

can I buy 1/2 a kilo of carbon from the air from the government? wtf I dont understand

though I must admit that's a great business decision..

"I know.. instead of costing us money, lets get the government more money.. they will go for that for sure!!!"

[nang3]

they can get f*cked the mofo f*ckheads !!

that's bullsh*t, how about the mofo polly f*ckasses downgrade from Calais/Fairmont/LTD's/Caprices etc to normal XT and Omegas.. theres about a $40k saving per polly f*cktard per car straight away !!

[f-wolf]

they can get f*cked the mofo f*ckheads !!

that's bullsh*t, how about the mofo polly f*ckasses downgrade from Calais/Fairmont/LTD's/Caprices etc to normal XT and Omegas.. theres about a $40k saving per polly f*cktard per car straight away !!

The wife of a friend works as a ComCar driver in Canberra. Airport to Parliament House one ComCar per Politician. Parliament House to Airport the same. No such thing as car sharing or a small bus.

[tab]

how the f*ck does this emmisions trading crap work?

can I buy 1/2 a kilo of carbon from the air from the government? wtf I dont understand

though I must admit that's a great business decision..

"I know.. instead of costing us money, lets get the government more money.. they will go for that for sure!!!"

In a nutshell for every tonne of carbon you pump in to the air you plant x amount of tree....or pay someone else to do it, which is where the "carbon trading" comes in to it.

You've may have noticed the thousands of hectares of prime agricultural land being converted to tree plantations - that's what most of them are all about.

Or in a smaller nutshell....it's a f*cking joke

[SCRIBR]

maybe stop cutting down the amazon =) that would do more than planting 1 pine tree everytime I do a chaps lap

[BFHOON]

tax on tax with tax on top........would u like tax with that sir.

its about time australia kicked jonny to the kerb.

[SCRIBR]

yeh but if they do that it will be all labour.. and that will be a very bad thing!

at the moment at least there is a balance of agendas

[oldskool]

absolute f*ck heads, man this makes me angry!!!!!

petrol already has a tax ontop of a tax, thanks johnny you furry little bastard

sorry but im seriously sick of being bent over by these companies and the government