Canberra is creaming an extra $350 million a month in GST from battered motorists, sparking a furious revolt by drivers demanding an immediate fuel tax cut.
Consumers are also anxious that Australia is running on empty, urging politicians to end reliance on foreign oil and secure domestic supplies before the country grinds to a halt.
The price of petrol has increased by about 70 cents a litre since the US-Iran conflict began in February, while diesel has surged by more than a dollar per litre.
From April 1 to June 30, the Albanese government halved the fuel excise to 26c/L, and the extra GST hit of nearly 6c/L was also offset.
After what Labor called a “welcome and substantial drop in the price of petrol”, the total reduction was wound back to 16c/L in July.
But oil prices took off again shortly after that. Brent crude rose from $US72/barrel in late June to well over $US100/barrel ($142) now.
Since August 2, motorists have borne the full brunt of ongoing fuel market chaos.
Westpac forecasts Brent will average $US101/barrel for the rest of this year then gradually ease to $US77/barrel in the fourth quarter of 2027.
A new survey of more than 2000 Australians – weighted to represent the national population – reveals 78 per cent of households want the federal government to reinstate the excise cut.
But Treasurer Jim Chalmers’ spokeswoman said the excise cut “was never intended to be permanent.”
The federal Coalition recently announced that in power it would halve the excise when oil exceeded $US100/barrel for two weeks.
Opposition Leader Angus Taylor said the Albanese government should immediately adopt the Coalition’s policy.
Mr Taylor said he wasn’t surprised by the survey’s findings.
“Australians are doing it tough at the moment and going backwards under Labor,” he said. “Fuel costs are a part of that.”
The national survey, by the Growth Intelligence Centre, found 76 per cent of people worry about Australia’s fuel supply and a similar share thinks Australia should be self-reliant in energy and fuel.
A spokeswoman for Energy Minister Chris Bowen said Australia should be more self-reliant, noting four of six refineries shut under the previous Coalition government. Labor was building a fuel reserve, increasing minimum stock holdings and backing feasibility studies into new refining capacity.
Mr Taylor said the Coalition would fast-track the development of energy resources.
The NRMA’s media head Peter Khoury said: “The more expensive the price at the pump, the greater the GST revenue.”
Extracted in full from: https://www.dailytelegraph.com.au/news/national/back-australia/aussies-want-fuel-tax-relief-as-government-collects-extra-350m-a-month-in-gst/news-story/0ccfff6fc1d99fd236110ebc161e0b50
