Motorists brace for higher prices as fuel tax cut ends
Australia is unlikely to extend the temporary halving of the fuel excise, as conflict in the Middle East breaks out ending the fragile ceasefire.
Motorists and transport businesses are being warned to expect an end to a cut to the fuel tax as conflict flares up between Iran and the US.
The $2.5 billion measure is planned to run out at the end of June, as Transport Minister Catherine King indicated it would not be extended further.
“We’re consulting, obviously, with industry about the impact of that, but people should at this stage expect that it’s coming off at the end of June,” she told ABC News Breakfast on Wednesday.
“We are doing everything we can to shield Australians from this conflict in the Middle East.”
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King said the government’s most senior ministers, including Prime Minister Anthony Albanese, have all been working “incredibly hard” to secure Australia’s fuel supply by shoring up key international relationships with partner nations.
The US military has begun launching “self defence” strikes against Iran in response to the downing of an American Apache helicopter.
US President Donald Trump earlier said his nation “must respond” to the attack.
Iranian state media confirmed explosions were reported in Sirik, a port city along the Strait of Hormuz.
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King said Australia urged diplomatic solutions to end the conflict in the crucial oil passageway.
“We want to urge all parties to continue to negotiate that,” she said.
“This is a pretty fragile ceasefire, and you’re seeing that borne out unfortunately.”
Labor has since introduced a $10 billion energy and fertiliser security package to secure the nation’s supply chains.
Australia’s onshore fuel reserves will be expanded to at least 50 days and a permanent, government-owned fuel reserve of about a billion litres will be established.
The minimum stock-holding obligation for suppliers will also be increased by about 10 days for every type of fuel.
-with AAP
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