The fuel excise tax will be cut in half for three months to deliver price relief at the bowser as war in the Middle East rages on.
National Cabinet agreed to reduce the fuel excise on petrol by 26.3 cents a litre, reducing the cost to fill a 65L tank by nearly $19.
It will kick in from April 1 and run to June 20 and is expected to cost $2.35 billion; click here for related media report.
The heavy vehicle road user charge will also be reduced to zero for three months to help truckies; the next scheduled increase will be deferred by six months.
The Australian Competition and Consumer Commission (ACCC) will monitor fuel prices to ensure the lower tax rate is fully passed even as the public is encouraged to use public transport to conserve fuel for the regions.
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Road Freight NSW (RFNSW) has welcomed the news about the road user charge, saying it is critical and timely.
“Halving the fuel excise and reducing the road user charge to zero will provide immediate and meaningful relief to operators who simply cannot absorb these escalating costs,” CEO Simon O’Hara says.
“It is critical that relief flows through the supply chain and that operators are not left to carry the burden alone.”
FUEL SUPPLY PLAN
Cabinet also released a National Fuel Security Plan that will see the Federal Government remain in constant contact with overseas trading partners to fill supply gaps.
It will give itself new powers to underwrite private sector purchases by changing the Export Finance and Insurance Act.
“We know that six out of 81 ships that were scheduled to arrive in April cancelled,” Prime Minister Anthony Albanese said on Saturday.
“Those arrivals have been more than replaced by other arrivals that have now been scheduled. We’re working to get more fuel but we’re also working on distribution to get it to where it needs to go,” he says.
The recent release of fuel reserves is going to regional areas for this reason, he adds.
“Our new fuel security powers will enable government to underwrite the purchase of fuel by the private sector,” Albanese says.
“Importantly, it will also allow for the purchase of fertiliser and other essentials as well,” he says.
“While Australia’s fuel supply outlook remains secure in the near term … let’s be clear that the longer this war goes on, the more the impact will be so what we want to do is to be overprepared.”
STATES REACT
Victoria has already announced free public transport for a month, starting from Tuesday, March 31, for all trains, trams and buses; only V/Line coach passengers need to book but that will be for a free ticket.
The NSW Government says motorists should only buy what they need at the bower in a bid to prevent gouging at the pumps.
Both NSW and Western Australian are asking companies to be more open about their supply stocks.
Tasmanians will ride for free on state buses until July 1, the state government says.
