Reducing taxes is exactly the wrong way to go. On the contrary, we need to increase the marginal cost of using the car. Today, it is close to zero.
Onésimo Alvarez-Moro
See article:
The only way the Government can cut the price of petrol is to reduce its tax and excise, the Royal Automobile Club of Victoria (RACV) says.
Following last week's petrol spike, which saw the price in Sydney peak at to $1.43 cents a litre, Labor said it would establish a national petrol commission to monitor and investigate price gouging.
Prime Minister John Howard has promised to meet the Australian Competition and Consumer Commission watchdog (ACCC) this week to offer it more powers.
RACV spokesman David Cumming dismissed both plans and said the only way fuel prices would drop would be to cut petrol tax and excise.
See full Article.
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