Fuel, rego and rate rises hit hard | Warwick News | Local News in Warwick

PRICE IS NOT RIGHT: Frasers Livestock Transport driver Greg Wilkinson fills up yesterday before the fuel subsidy was scrapped.

Warwick Daily News

A “BELT tightening” time is how Warwick livestock transport operator Ross Fraser describes the start of this financial year.

For the iconic local company it will be a case of 'keep the cheque book handy' as they factor in a $600,000 per year increase in diesel costs thanks to the State Government abolishing the 8.354 cents/litre fuel subsidy last night.

This jump in fuel costs will be further exacerbated by a 20 per cent rise in vehicle registration costs from today.

For Fraser, this equates to a bill of $2658 for each of the 40 B-double trucks they operate, with registration fees for prime movers also set to rise.

“It's an overall 6.2 per cent increase in costs for us,” Mr Fraser explained.

“Unfortunately there is not much we can do about it, but it will have an impact on what were already slim profit margins.”

But it is not just major companies reeling in the wake of economic price hikes set to make this financial year a costly exercise in living.

Stanthorpe motorist Stephen Oliver yesterday joined dozens of locals to queue to fill petrol tanks for the last time before Queensland's fuel subsidy was scrapped.

Mr Oliver, who does between 60 and 80km daily in work and school trips, said the increase in fuel and registration hikes would put added pressure on his already tight family budget.

“We're in for a tough time; everything seems to be going up except for wages,” Mr Oliver said.

“We have two vehicles and a motorbike to register so we're going to feel the price rises.”

Mr Oliver said working more than 10km out of town limited his options when it came to alternative transport.

“It's a bit far to be walking,” he said.

Allora-based fuel distributor Glenn Hentschel said road users were destined to bear the brunt of today's State Government changes.

“We've had a 400 per cent increase in business in the past month with people buying in fuel before the subsidy was scrapped,” the Glenmar Fuels owner said.

“There is no doubt that anyone in the transport industry is going to find this financial year tough.”

Mr Hentschel said his business anticipated a $2500 increase in fuel costs per month paired with a $6000 increase in annual registration fees.

“This has to have a flow-on effect for everyone in our community,” he said.

“We are living in a rural and regional area so practically everything here comes in or out by road so these additional costs are going to have to be passed on.”

Mr Hentschel said the average person would be affected as transport costs flowed on to groceries and other essential goods and services.

“I believe it is going to be a difficult year,” he said.

Warwick Chamber of Commerce president Danny Spry echoed the business sentiment of “belt-tightening” times.

“Local businesses are going to be forced to make some adjustments to cope with new State Government costs,” Mr Spry said.

“Any business dependent on road transport - and that is practically all business in a region like ours - are going to face flow-on price rises.”

In response to Southern Downs Regional Council predictions ratepayers should expect a minimum 10 per cent rate rise, Mr Spry warned businesses to prepare for leaner times.

“I believe local people will be very conscious of their spending patterns and we won't see individuals spending unnecessarily,” he said.

“But longer term I believe our region offers stability; we're not a boom and bust place.”