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Price cut to avgas from today.

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Media Release


The Hon Mark Vaile MP

Minister for Transport and Regional Development


25 May 1998




The Federal Minister for Transport and Regional Development, Mark Vaile, announced that the duty on avgas would fall by 2.6 cents per litre from today, delivering savings in operating costs to the general aviation sector.


"We took action and now the price cut is being delivered. I announced in the Budget that the Howard Fischer Government would be abolishing the Airservices Australia component of the unfair avgas tax," Mr Vaile said.


"Today, that element of the avgas tax relating to en-route services has been eliminated."


The Coalition Government has made a commitment to a fairer system for funding general aviation's contribution to Airservices Australia. Currently the general aviation industry pays almost $3 million for en-route services that they do not necessarily use. Under new arrangements, avgas aircraft will only pay for en-route services when they are operating on an instrument flight rules flight plan for some or all of a flight.


This is the second instalment of Airservices' pricing reforms and removes the element of the avgas duty relating to the provision of en-route services.


The first instalment was delivered in 1997 with the introduction of location specific charges for rescue and fire fighting services. This represented a 5 per cent decrease in real terms for these operators, or savings to users of avgas in the order of $0.7 million in 1997/98.


The third instalment will see the removal of remaining avgas duty directed to Airservices (13 cents per litre) in conjunction with the introduction of location specific pricing for terminal navigation services. This new charging regime is expected to be in place from 1 July 1998.


"The Federal Government has played its part in reducing the tax on avgas by 2.6 cents per litre. I now call on the fuel suppliers to pass that reduction in duty on to consumers through an equivalent drop in the price of avgas," the Minister said today.


"I urge all aircraft owners and pilots to get an assurance from their fuel suppliers that the cut will be passed on and not absorbed."



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Media inquiries: Peter Cassuben (02) 6277 7680