AUTOMOTIVE AIR CONDITIONING - R134A PRICE RISE SHOCK
Carbon Tax has hit the automotive industry real hard --- Read More
South Australian retail automotive businesses have started to see the impacts of the Federal Government’s Carbon Tax with vehicle refrigerant gas (R134a) prices to increase by more than 62 percent from 1st July 2012 according to the Federal Government’s fact sheet on calculating the Carbon Tax.
Members of the Motor Trade Association of South Australia use an average of 600 to 800 grams of refrigerant when re-gassing a vehicle’s air conditioning system. The Carbon Tax will result in an increase of about $18 - $24 per service for the refrigerant.
“It is even worse for the farming community, with increases likely to be much more due to the extra volume of gas needed in farm machinery air conditioning,” MTA Chief Executive Officer John Chapman said.
“And that sector certainly will be unlikely to get any cost offsets or Government rebates.”
Mr Chapman said that the refrigerant gas example is only the tip of the Carbon Tax iceberg for businesses and consumers.
“The $23 per tonne Carbon Tax will have a considerable impact on the automotive industry, and businesses will have no option but to pass on these price increases to consumers where they can,” Mr Chapman said.