AgForce president John Cotter said axing the fuel rebate will increase road transport costs by 10 per cent, but the multiplier effect on freight for farm inputs and outputs could mean that figure is doubled at the supermarket check-out.
Mr Cotter said rural and regional Queenslanders would be the most severely impacted because everything must be freighted in and out.
"Increased fuel costs will impact initially on producers in the bush, but they will eventually have to be passed on and their inflationary impacts are certain to be felt by Queensland consumers in terms of increased food prices," Mr Cotter said.
"Regional communities are already paying higher prices at the fuel pump but the downstream multiplier effect of 4-to-1 means significantly increased input costs on all small businesses as well as local government and service groups."
Mr Cotter said it has been estimated that removal of the subsidy will cost about $15,000 per truck per annum in extra fuel costs from July 1.
The increase is coming on top of hikes in the cost of vehicle registration, new regulations and increasing pressure to keep up with regional freight demands, he said.
|
| |
