Fuel hike hits us all

Arthur Gorrie | 4th July 2009

MOST people will pay dearly for this week's petrol and diesel price rises, reflecting the end of the state government's fuel subsidy.

The end of the fuel subsidy has hit Dick Schroder.

Renee Pilcher

Poll

Will the July 1 price increases have a big impact on your family?

This poll ended on 31 July 2009.

Yes

70%

17%

Unsure

11%

This is not a scientific poll. The results reflect only the opinions of those who chose to participate.

MOST people, especially in regional Queensland, will pay at least several times for this week's petrol and diesel price rises, reflecting the end of the state government's fuel subsidy.

The increases will affect the price of everything we buy, not only through increased delivery costs for finished products, but also through the transport costs of the parts, equipment and resources used to make those products in the first place.

While motorists have already experienced the direct and widely predicted hip-pocket effects of the week's fuel price rises, business costs and probably all other consumer prices will also be subject to upward pressure.

“Everything comes in a truck,” as one Gympie business operator said this week.

“(Treasurer) Andrew Fraser says it shouldn't affect food production, but that's only if you don't count the cost of transport to market as part of your production,” Gympie dairy entrepreneur Dick Schroder said at his Dagun processing plant yesterday .

Mr Schroder said increased fuel costs would have a major effect on primary production in Queensland, a sentiment which echoed that of peak rural group Agforce and its Goomeri-based grazier president John Cotter.

Mr Cotter said the increase would greatly impact the cost of living or doing business in regional Queensland.”

“We do all our own transport,” said Mr Schroder, “including all the materials we need coming up from Brisbane and all the product we make going out.

“Our truck goes down to Brisbane three days a week, backloads with materials - bottles and other stuff we need - so we keep our transport costs down. We run it fairly efficiently.

“Dairying probably uses the least fuel of any agricultural industry, aside from pumping. But if you look at grain growers, pineapple growers and small crops producers using their tractors all the time, it's got to affect them.”

Jim Herbohn, of the Gympie transport company, Masondale Pty Ltd, said that while some of his contracts allowed for fuel price increases, the effect would still occur, but at the expense of customers.

On other contracts, the firm would have to look at price increases.

The owners of Polleys Coaches, Warren and Mark Polley, said the increase would put costs through the roof for the pioneering Gympie transport firm. They would have to add costs onto their charter fees, but could not increase local bus ticket prices, because that was controlled by Queensland Transport.

Darryl Lee, of Tin Can Bay's Lee Fishing Company, said it would now cost nearly $1000 in fuel to put to sea for a night.