Albanese reduces fuel cost and announces national fuel security plan

Australian Prime Minister Anthony Albanese has confirmed the government will halve the fuel excise on petrol and diesel for three months. This comes after calls from the Coalition to ease fuel costs for motorists.

Albanese confirmed the measure will reduce the cost of fuel by 26.3 cents a litre and an agreement between states and territories will ensure their budgets won’t benefit from elevated GST revenue.

“We are announcing the commonwealth government will halve the fuel excise on petrol and diesel for three months. The halving of the fuel excise will be reduce the cost of fuel by 26.3 cents per litre,” Albanese said.

“We are making fuel cheaper today because we understand that Australians are under serious pressure.”

Albanese also encouraged city-based workers to use public transport to ease pressure on fuel supplies for the industries “that need it.” The Victorian government also recently announced public transport will be free across the state in April.

Treasurer of Australia Jim Chalmers also confirmed the government would cut the heavy vehicle road user charge to zero for the next three months.

The Treasurer said the measures announced today would cut the cost of a 65-litre tank by around $19 and would cost the budget $2.55bn. Delaying the increase to the heavy vehicle road user charge would reduce revenue by $53m.

“So this relief is temporary, it’s timely, and it’s responsible. It’s all about taking some of the edge off these high petrol prices which are putting such extraordinary pressure on household budgets right around the country,” Chalmers said.

He added that the fuel cuts are expected to lower headline inflation by roughly half a percentage point in the June quarter.

As part of the announcement, Albanese also introduced a national fuel security plan, endorsed by all states and territories at the national cabinet meeting.

The plan defines four levels of action: ‘plan and prepare’; ‘keeping Australia moving’; ‘taking targeted action’; and ‘protecting critical services’. Albanese noted the current measures sit within the second level of action, focused on keeping Australia moving.

Although each level has specific triggers, Albanese said the country is still “substantially away” from needing to move to the third stage.

Source: The Australian