One problem I have with the fuel levy, is it is a non-productive tax. It creates no jobs. It is simply a levy added to the price, which the big oil companies pay over to Government in one fat cheque.
If the fuel levy was removed, and instead VAT or other tax duty was increased, people would spend the fuel tax money they saved on VATed goods and services.The goods and services would result from economic activity (jobs) like farming, industry, logistics and services. In effect, Government collects the same revenue, but now more people are employed to meet demand for goods and services to collect this tax.
Or am I completely wrong?