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The Australian government subsidises diesel from primary producers to the tune of AU$11 billion per year. Dr Andrew Forrest of Fortescue Metals has come out swinging, saying that the 18 largest miners receive about one third of this, and don’t need it.As Fortescue heads to real zero, Forrest wants a shake-up. On the other side of the fence, Gina Rinehart of Hancock Prospecting, another beneficiary of subsidies, is quietly moving to more renewable energy in her mining operations. This, despite supporting right wing, fossil fuel friendly politicians and decrying renewables as a self-regenerating magic pudding. Gina recently donated a jet to One Nation’s Pauline Hanson (our redheaded female Trump impersonator.)
Which begs the question: Is energy from renewables cheaper than subsidised diesel? It appears so.
The diesel subsidy supports a number of industries. Fortescue CEO Dino Otranto is anxious to point out: “We are not talking about small miners, explorers, farmers, truck drivers or tradies. This is about putting a sensible cap on massive tax credits and restoring fairness to the system.
“It [the Fuel Tax Credit] is leaving Australia more dependent on overseas fuel at a time when the world is becoming less stable. It makes no sense to keep subsidising that dependence. Capping the diesel tax handout is a practical step toward restoring energy security and building a fairer, more resilient, self-reliant system.”
