delete Petroleum Excise (Prices) Regulations (Amendment)
Federal regulations governing the calculation, declaration, and administration of excise duty rates applied to petroleum products (including crude oil, condensate, natural gas, and refined fuels). The instrument establishes price-based assessment mechanisms for determining excise liabilities, requiring reporting and record-keeping obligations on petroleum producers and importers.
This instrument represents government price-fixing in petroleum markets, distorting the crucial price signal mechanism that Hayek identified as essential for efficient resource allocation. Excise duty systems layered onto price controls create compliance costs that fall disproportionately on smaller producers and regional businesses. Such price interventions historically produce unintended consequences: reduced exploration incentives, supply misallocation, and market distortions that ultimately harm consumers. Milton Friedman's analysis demonstrates that price controls never achieve their stated goals without causing shortages or surpluses. The compliance burden and market distortions imposed by this instrument—covering an industry fundamental to Australia's comparative advantage in resources—cannot be justified by outcomes achievable through simpler, less interventionist means. Australians would be better served by allowing petroleum markets to function with minimal excise manipulation of prices.