Australia cuts fuel excise by half for three months to combat soaring petrol prices driven by Middle East conflict, costing the government RM 5.5 billion.
SYDNEY: Australia will halve its fuel excise tax for three months to provide immediate relief to motorists facing soaring petrol prices due to the war in the Middle East.
Prime Minister Anthony Albanese announced the measure on Monday after meeting with state and territory leaders to address fuel shortages.
The tax cut will reduce the current levy of 52 cents (RM1.42) per litre of petrol sold at the pump, costing the federal government approximately A$2.55 billion (RM 5.5 billion).
“We are making fuel cheaper today because we understand that Australians are under serious pressure,” Albanese said.
The government has sought to reassure the public that fuel shipments continue to arrive, attributing shortages in rural areas to panic buying and distribution bottlenecks.
To conserve supply, Victoria and Tasmania have made public transport free, with Albanese urging city drivers nationwide to reduce their car use.
“The less fuel we use in the cities obviously the more we can redirect to regional areas that are under pressure,” he told reporters in Canberra.
New South Wales Premier Chris Minns reported scores of petrol stations without fuel, stating the focus was on assisting rural towns.
“If the situation gets worse, we will take extra measures,” he said.
Parliament also introduced a bill granting the government powers to underwrite the purchase of shiploads of fuel to bolster national supply.
Weekly government data showed Australia has 39 days of petrol supply, a slight increase, and 30 days of diesel.
The government will further reduce costs for the trucking industry by cutting the heavy vehicle road user charge.
Official monitoring showed average petrol prices in New South Wales leapt from A$1.82 (RM 4.95) in February to A$2.48 (RM 6.75) on Monday, with diesel reaching A$3 (RM 8.17).
