Australia's oil industry today rejected Federal Government claims that cost reductions as a result of tax reform would see industry savings of 1.5 cpl on petrol and diesel.
The Deputy Director of the Australian Institute of Petroleum, Mr Ewen Macpherson, said the Government's claimed cost reduction of 1.5 cpl amounted to around $400 million or one quarter of the total costs incurred by industry to refine, distribute and market petrol and diesel.
"Any savings that do exist will be passed on, but they will not be anywhere near 1.5 cpl," Mr Macpherson said.
Mr Macpherson said the cost of crude oil and the Government tax take were the most substantial components in the price of a litre of petrol. The Government's claimed 1.5 cpl saving would have to come from the small remaining component, which must cover all costs of refining, distribution and marketing fuel.
"The Government's claimed saving simply has no basis in reality," Mr Macpherson said.