RickInOz

In recent weeks a rather sinister form of hysteria has been whipped up in South Australia. As fuel prices increase the major parties have been seeking to take advantage. The liberals (the Aussie equivalent of the Tories) have jumped on the populist band wagon by claiming they would have instituted a 10c a litre cut in fuel duty.

With spiraling petrol prices it was hardly surprising that this managed to sway opinion in their favour and Kevin Rudd has been on the back foot ever since. However these sorts of soundbites are nothing more than transparent panaceas designed to win over gullible people.

In reality, if the Liberals were in power it is unlikely they would be able to effect their promise. Firstly, fuel prices track the global oil price and this is hardly the jurisdiction of national government. Secondly, the saving would not be that significant. Consider an average car with a 50 litre fuel tank, even if filled weekly, the total annual saving would only be $250. Now I know this is not to be sniffed at, but the same amount could be saved by reducing car use. Over decades people have become dependent on cars, aided by cheap fuel, to the point that even short journeys are taken by car. Public transport could help too, but it is stymied by the vicious cycle of lack of demand disincentivising investment. Finally, and here simple economics come into play, if the Liberals reduced fuel excise, how would they make up the drop in tax revenue. Do they honestly think the public would stomach a rise in tax elsewhere or a reduction in services.

This recent furore is a perfect example of short-term narrow-minded politics. The average joe can be relied on to vote with his wallet and fuel prices are simply the latest excuse to pander. Yes, this is what political parties do best, but it is still underhand and undignified.