The Australian Customs and Border Protection Service have confirmed that the duty rates on a number of alternative fuels have been increased in line with amendments to the Clean Energy Act 2011.
The new duty rates sees CNG for transport purposes increase from $0.0522/kg to $0.1045/kg, with the same adjustment made to duty on liquid natural gas (LNG). The increase in liquid petroleum gas (LPG) doubles from $0.025/L to $0.05/L.
Initially, the new taxation rates on alternative fuels will adhere to a Carbon Pricing Mechanism that is fixed-charge based. This pricing system will be retained for a period of 3 years, ending on June 30, 2015, when market developments will begin to have a direct influence over the charges to be paid.
However, the prices are due to increase steadily over that period. From 1 July, 2013, the prices will see CNG for transport purposes, and LNG both increase from $0.1045/kg to $0.1567/kg, while LPG will increase from $0.05/L to $0.075/L. In 2014, CNG and LNG will both increase to $0.209/kg, and LPG to $0.10/L.
Flexible charges will be introduced after the final fixed-charge adjustment on July 1, 2015. The final adjustment is expected to see CNG and LNG duty both increased to $0.2613/kg, and the duty on LPG to $0.125/L.
[mappress] LNG World News Staff, August 16, 2012