Sky News Political Editor Andrew Clennell says the “main reason” the Labor government is not implementing a petrol excise cut is because of the “absolute fortune” it will cost the budget ahead of an election “15 to 17 months” away.

Treasurer Jim Chalmers and Finance Minister Katy Gallagher delivered the Mid-Year Economic and Fiscal Outlook on Wednesday.

Mr Chalmers said there have been “wild swings” in the price Australians have been paying at the bowser after being asked whether he would consider an excise cut as the MYEFO says inflation is being driven by the price of petrol.

“Important not to forget we’re 15 to 17 months probably from an election,” Mr Clennell said.

“If you put on a petrol excise cut now which costs an absolute fortune to the budget, you’re just going to have to put the tax back on in about six months or nine months, or certainly before an election.

“That’s the main reason they’re not doing it.”

Extracted in full from: