Fed: Nervous Lib MPs press for petrol tax cut

AAP General News (Australia)
08-22-2000
Fed: Nervous Lib MPs press for petrol tax cut

The GST watchdog is investigating major oil companies over claims they're pocketing
a $500 million fuel rebate designed to offset the tax for country motorists.

The move comes as Treasurer PETER COSTELLO rejected demands from nervous Liberal backbenchers
for the government to halt further petrol excise increases.

Labor's small business spokesman JOEL FITZGIBBON today released a memo from Shell,
in which the company revealed it raised prices in areas benefiting from the fuel rebate.

Australian Competition and Consumer Commission chairman Professor ALLAN FELS says he's
already launched inquiries into the document and that Shell denies any wrong doing.

He also revealed a potentially far more serious inquiry on a similar issue is under
way into another unnamed oil company.

He says the ACCC would welcome any information from service station proprietors on
whether oil companies are pocketing the fuel rebate.

Prices have now hit $1.00 a litre in most cities, but despite pleas from nervous government
backbenchers, Mr COSTELLO has rejected outright any move to cancel the excise increase.

AAP RTV ss/jn

KEYWORD: PETROL (CANBERRA)

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