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Labor fears Spirit of Tasmania fuel levy here to stay until TT-Line recoups costs

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Labor leader Josh Willie called for the fuel surcharge to be scrapped. Image / File

Labor is renewing its push to have the fuel surcharge on Spirit of Tasmania tickets scrapped, arguing passengers are still paying extra even though fuel prices have fallen.

TT-Line introduced the temporary 15% passenger fuel levy on March 31 after fuel costs jumped following the outbreak of conflict in Iran.

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At the time, TT-Line said two adults travelling with a standard vehicle would pay about $107 more each way, while a family of four with a car and caravan would pay an extra $228.

Labor leader Josh Willie said a leaked email from June showed the surcharge “could remain in place for months”, despite fuel prices dropping below pre-conflict levels.

He said Tasmanians and businesses relying on tourism were already struggling with higher costs.

The Spirit of Tasmania has carried a 15% fuel levy since March 31. Image / Pulse

“… And now fuel prices have settled it doesn’t make sense to continue to disincentivise travel to Tasmania through the surcharge,” Willie said.

“Tasmania’s government businesses are supposed to work for Tasmanians, yet after being taken to the brink by the Liberals, TT-Line is making Tasmanians pay instead.”

In the email, TT-Line chief executive Chris Carbone wrote that the company wanted to recover the full cost of the fuel increase.

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He said the surcharge is “temporary and limited to recovering the passenger share of fuel cost variances”.

“TT-Line’s goal is to recover 100% of what we regard as the additional fuel costs incurred due to the Iran conflict,” Carbone wrote.

TT-Line chief executive Chris Carbone wrote that the company wanted to recover the additional fuel costs in full. Image / Supplied

He said the length of the levy and its rate were being monitored monthly.

But TT-Line says the surcharge has not covered its extra fuel costs.

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The company said this week that in April and May, passenger fuel costs were $4.1 million above forecast, with $2.4 million recovered through the surcharge.

TT-Line chair Ken Kanofski said the levy was under constant review.

Premier Jeremy Rockliff said TT-Line was still out of pocket despite the levy

“We are looking very closely at the passenger fuel surcharge because, as we have always said, it is a temporary measure aimed at recovering the additional cost of fuel,” Kanofski said.

Asked about the surcharge on Sunday, Premier Jeremy Rockliff said TT-Line was still “out of pocket” even with the levy in place.

“They’ve said they will phase it out as soon as practicable,” Rockliff said.

“TT-Line … need to manage their business and their finances as best as practicable in the interests of the Tasmanian people.”

TT-Line said a separate fuel surcharge on freight would stay in place, in line with industry standards.

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