Australia may unfreeze petrol tax

In its desperate bid to find money to plug a A$200 billion (US$149.82 billion) revenue hole in the federal budget, the Australian government said it is considering removing the freeze on petrol tax imposed by the previous administration in 2001. The previous government had made the snap decision to freeze petrol tax at A$0.38 (US$0.27) per liter for unleaded fuel in February 2001 to combat a political problem surrounding goods and services taxes before the election that year. It has saved motorists A$0.09 (US$0.06) a liter in taxes, although government insiders say pump prices have fluctuated by far more than that over the same period. While the petrol tax has been frozen, the government continues to automatically increase the excise on alcohol and cigarettes twice a year, on February 1 and August 1. (May 7, 2009)