PM Transcripts

PRIME MINISTER
FOR PRESS 26 JANUARY 1978
PETROLEUM SUBSIDY SCHEME
The Prime Minister announced today that Commonwealth legislation
to provide for payment of a fuel price equalisation subsidy would
be introduced shortly after the commencement of the forthcoming
Parliamentary session. Because of the need for complementary
State legislation he has written to the State Premiers seeking
their cooperation in this matter and in making subsidy payments
on behalf of the Commonwealth to the oil companies.
The Government indicated in the election campaign that it would
take action immediately after the election to implemen-t a proposal
to subsidise the. freig-ht differential on motor spirit, power
kerosene, aviation fuels and automotive distillate sold in
country areas. The scheme proposed will be along similar lines
to the one which operated from 1965 to 1974.
Initially, the scheme will bring down the price of these
products to less than one cent per litre ( 4 cents per gallon)
above relevant city prices. It is further intended to lower this
margin to less than half a cent per litre ( 2 cents-pergallon)
in the life of the present Parliament.
Preliminary discussions have-taken-place between Commonwealth
officials and the oil industry marketing companies who have
indicated general agreement with the scheme proposed by the
Government. The actual date-of commencement of the scheme is dependent on
necessary amendments to the complementary legislation being
passed by the State. Parliaments.
The Government is anxious that the scheme should commence as soon
as possible so that the people in country areas will receive
the benefits of reduced petroleum products prices.
The Prime Minister looks forward to the cooperation of the
State Governments in achieving this aim.