Natural gas solves diesel problem: Macquarie Business School

Description

he Federal Government should use the opportunity of higher petrol prices to review the entire fuel tax system according to a senior lecturer at Macquarie Business School.

As Australian motorists brace for impact from the temporary halt to the fuel excise ending on 28 September, Dr Lurion De Mello sees it as chance for the Federal Government to usher in a new era of cleaner fuel and lower taxes.

De Mello, who works within the Department of Applied Finance at Macquarie Business School, believes it is an ideal time for authorities to overhaul the fuel tax regime.

“We need better tax incentives to encourage the use of cleaner fuels like the octane 95 and 98. The 91 fuels should be discouraged with higher taxes and then eventually phased out as they have been in Europe,” he said.