Fuel price rises eat into tax cuts
By Adam Bennett
4:00 AM Wednesday Jun 30, 2010

Petrol prices will rise tomorrow as the Government's emissions trading scheme hits households and businesses already facing rising costs that threaten to cancel out the gains from October's tax cuts.

The Emissions Trading Scheme (ETS) takes effect on transport, the energy sector and industry tomorrow, and the Government is predicting petrol prices will rise 3.1c a litre and diesel 3.3c a litre.

Climate Change Minister Nick Smith yesterday said it was up to fuel companies to decide when they passed on the cost of the ETS to customers, "but I would expect increases in the price from Thursday".

Fuel companies yesterday said prices were likely to rise immediately.

BP said it did not yet know how it would change its prices and would review the situation tomorrow, but Caltex said it would lift its petrol prices by 3c a litre and diesel by 4c.

More here.