Welcome to the carbon price gouge

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From the ABC:

The WA Government has refused to commit to removing an extra charge added to public transport fares when the carbon tax was introduced.

In 2012, the Government said public transport fares would jump 1.5 per cent to recover the estimated cost of the carbon tax.

Opposition transport spokesman Ken Travers said it was outrageous that the Senate had voted to repeal the carbon tax in mid-July but the State Government was yet to pass the saving on to WA commuters.

Mr Travers says with the carbon tax now gone, the Government was obligated to remove the additional charge, which is equivalent to 10 cents for standard fares.

He estimated the additional carbon tax charge was raising $300,000 a month in revenue.

…Transport Minister Dean Nalder has refused to commit to removing the charge, citing challenges to the state’s finances.

If the WA government is going to try it on then imagine what private business is going to do.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.