The NSW Government’s mini-budget decision to discontinue the 8.35 cents a litre reduction from July 1, is going to make life difficult for individuals and companies, with an average truck based in northern NSW expected to lose about $8000 a year.

The subsidy is paid to ensure fuel sellers can compete with the lower prices in Queensland.

Inverell Freighters owner Kerry Brown said the abolishment would stop his drivers fuelling in NSW.

“Which means it is going to effect fuel companies in NSW even more,” he said.

“At the moment we do have an existing practice of buying fuel in Queensland before we leave but we will be taking all avenues to buy as much as we can from there from now on.

“The abolition of the subsidy is going to have a very bad effect on resellers.”

Mr Brown said he would also be looking at installing additional fuel tanks on trailers so requirements can be fulfilled in Queensland.

“We have never had to go to this extreme before but without the fuel subsidy we have to look at that.

“When the subsidy is scrapped we will just avoid buying fuel in this area.”

From March, it is likely the Queensland fuel subsidy will only be available for registered vehicles in that state, so NSW operators won’t have the option of crossing the border to fill up there.

But that won’t stop Mr Brown as he is in the process of registering all his prime movers in Queensland.

“Which means the NSW Government will be missing out even more,” he said.

“The more they put our fuel tax up the less they will get.

“The irony of it will be is that under the existing regime companies such as ours bearing a NSW town name will have no alternative than to move to Brisbane and operate there.

“The worst part of this is that we live in a country where a national industry is effected by State Government’s that can’t manage their own budgets.”

Australian Trucking Association NSW manager Jill Lewis said the government needed to reverse its decision and consult with the industry.

“This decision will place our members in a diabolical position and extra costs will be passed on to customers,” Ms Lewis said.

“It is very clear that the Government hasn’t thought through the effect of its decision on trucking companies in northern NSW.”