Australia $1 fuel stumps pumps

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$1 fuel stumps pumps By Frank Walker and Liz Hannan -

SERVICE station owners could soon have to pay up to $25,000 to convert petrol pump meters to charge more than $1 a litre.

With petrol hitting 99.9 cents a litre in western NSW and further increases ahead with rising world oil prices, service station owners warn they will have to pass on the cost of the new meters to customers.

"Nobody wants petrol at $1 a litre but it is heading for that level if the international oil price continues to rise," said Chris Hanlon, chief executive of the Service Station Association.

"I don't think prices have ever been that high and most petrol pumps can't even display the $1 a litre price.

"It would cost service station owners between $10,000 and $25,000 to change the meters if prices go over $1 a litre.

"One station in Wilcannia has prices at 99.9" a litre and the only reason they aren't going over $1 is the pumps can't register it."

Shell Wilcannia proprietor Russell Whitbread said he should be charging more than $1. "If the bowsers could go higher I would put the price up," he said.

"I am going to give the bowser mechanic a call to see if he can crank it up a bit so it could show amounts over $1."

Mr Whitbread defended the high prices in the country and said he had heard rumours that "it'll be up to $1.20 in Sydney in six months".

"Six years ago petrol was 86" here and now it's 99". That's not too bad," he said. "We are still on the same margin, about 10" a litre, and that's before we pay wages."

Central Darling Mayor Robert King, of Wilcannia, said shire service station owners were "doing it tough".

"One told me he is buying his petrol for 92" a litre and needs to sell it at $1.03 or $1.04, but he can't," Mr King said.

Many service station owners face further costs under a new Government regulation which forces them to install large roadside signs displaying their petrol prices by March 24.

The lit signs can cost up to $25,000 and owners who fail to show their prices can be fined $550.

The average petrol price is now 85.9" a litre in Sydney and 92.9" a litre in country areas.

Mr Hanlon said the GST and rising oil prices would force petrol well over $1 a litre unless the Federal Government gave motorists a tax break.

Prime Minister John Howard has pledged the GST will not push up petrol prices, and the excise tax on fuel will be lowered to match any effect of the 10pc GST.

Mr Hanlon said the excise would have to be lowered by at least 9" to keep prices constant when the GST started on July 1.

http://www.sunherald.com.au/content/20000305/news/news_story5.html

-- Martin Thompson (mthom1927@aol.com), March 10, 2000


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