Following a national cabinet meeting with all Australian states and territories on Monday, the federal Labor government has announced it will halve the fuel excise on petrol and diesel – saving motorists around 26c per litre for a three-month period.
Prime Minister Anthony Albanese also confirmed that the heavy-vehicle road-user charge will be reduced to zero for the next three months to ease the cost pressure on small trucking companies – a charge that currently sits at 32.4c per litre.
Speaking to Australian media, Mr Albanese said that halving the excise, scrapping the heavy-vehicle charge and announcing a four-phase fuel security plan was aimed at keeping the economy going and keeping Australia moving.
“We’re making fuel cheaper today because we understand that Australians are under serious pressure,” he said. “People should enjoy their Easter, and it’s important as well that we keep the economy going. This is an important time for tourism destinations, for jobs – they rely upon that,” said Albanese.
Energy Minister Chris Bowen said that legislation to finance the delivery of additional fuel shipments to bolster supply would be presented to the senate tomorrow, with the hope that it passes.
“Australians want to know what’s being done to secure our international supply of fuel and oil, and we’re very pleased with the progress we’ve made,” said Bowen.
Treasurer Jim Chalmers confirmed that these measures would come at a significant cost to the budget, however. Temporarily halving the fuel excise and scrapping the heavy-vehicle road-user charge will cost around $2.55 billion, with currently no solution as to how these cuts will be offset.
“The steps that we’re announcing are all about taking some of the sting out of these higher petrol and diesel prices,” said Chalmers.
“This is timely, this is targeted, this is responsible cost-of-living relief to help people get through a difficult period,” he said.
