Petrol prices could jump by a 26 cents a litre in July with the Prime Minister refusing to say if he will extend a temporary tax cut on petrol prices.
Anthony Albanese left the door open on Thursday to extending the fuel excise cut to help contain the price of petrol.
But he cautioned that a decision on the “very costly” measure will be made close to June 30.
Currently the changes are saving motorists $19 on the cost of a 65L tank of fuel.
The Prime Minister said no final decision had been made on extending the $2.5 billion temporary tax cut for Australians to soften the impact of the war in the Middle East.
The temporary tax cut has reduced the cost of fuel by 26.3 cents a litre since April.
“We’ll do an assessment closer to the day, it’s costly, but as well it has made a difference,” Mr Albanese said on Thursday.
“We are doing pretty well with what the expectations were, people have stopped asking me about it, which is good about supply.
“We’ll make the assessment, like it’s really volatile times we don’t know when this war in the Middle East is going to end.
“We’ve got the ceasefire still going at the moment, we want (the conflict) to end.”
Australia’s temporary fuel tax cut kicked in on April 1 and runs until June 30 – unless the government decides to extend it.
The $2.5 billion fuel tax cut officially took effect last month amid predictions that the petrol crisis will peak in April as the fallout from the war against Iran continues.
Further, the Albanese Government will reduce the Heavy Vehicle Road User Charge to zero for three months to help truckies continue their vital work for our nation. The Government will also defer the next scheduled increase in the Heavy Vehicle Road User Charge by six months.
Australians are encouraged to use public transport wherever possible to help conserve fuel for the regions.
The Australian Competition and Consumer Commission (ACCC) will continue to monitor fuel prices to help ensure that the lower excise rate is fully passed on at the bowser.
The Treasurer said that he had directed the consumer watchdog, the ACCC to ensure that the benefit is passed on.
“People shouldn’t be taking motorists for mugs when it comes to passing it on,’’ he said.
“And so the change kicks in at midnight, but people should expect to see it over the course of the next fortnight or so.”
There were fears that the cheaper petrol would simply fuel demand as the government warns against panic buying but that hasn’t been a major problem.
After repeatedly ruling out the option until now, the government announced the change in March but did not signal an extension in the May budget.
Government sources have told news.com.au that “everything is on the table” amid fears the crisis could worsen, and options are being developed for multiple scenarios.
Richard Holden, an emeritus professor of economics at the University of NSW, said there were downsides to cutting petrol excise.
“It’s a bad idea economically because, despite the best of intentions, any government has a hard time turning the tap off,’’ he said.
“At a time when we need to be reducing demand, this is going to fuel demand.”
Libs plan for fuel tax
Liberal leader Angus Taylor had campaigned for the fuel excise cut for weeks in the lead up to the policy backflip.
“Anthony Albanese is asleep at the wheel. He needs to stop watching and start acting. Australians are hurting,’’ Mr Taylor said.
“Families across the country are seeing their standard of living collapse, yet Labor does nothing.
“Right now, what we need is an immediate tax cut at the bowser and a government that gets fuel to where it is needed.”
Extracted in full from: https://www.news.com.au/technology/motoring/on-the-road/volatile-anthony-albanese-to-make-huge-call-on-petrol-prices/news-story/702cb8ab52b0db37070a9321b1e8c438
