A new fuel subsidy plan that will ensure Queensland motorists have the cheapest petrol in Australia has been finalised by the state government.
Premier Peter Beattie says Cabinet agreed to the new subsidy scheme today.
"Under the old arrangements the government paid the subsidy to a range of fuel companies," he says.
"Now the subsidy will be paid directly to your local petrol station and to Queensland people who use fuel in large quantities."
Treasurer David Hamill says retailers and bulk end users, including bus operators, transport companies and farmers, will need to apply for licenses to receive the subsidy.
"They will buy fuel at the wholesale price and claim the subsidy directly from the government.
"The new scheme for bulk end users starts on October 1 and the retail scheme starts on December 1," Hamill says.
Beattie says the scheme will result in petrol prices being about 10-cents less than unsubsidised prices.
This is because the 8.35-cent per litre subsidy results in nearly 2-cents per litre less in GST.
For more information on the scheme, call 1800 814 657 or visit
the government's website.