Fuel tax cut extension on cards amid fresh crisis talks
State and territory leaders will get an update on Australia’s fuel crisis as the Prime Minister leaves the door open to extending tax cuts on petrol and diesel in response to the war in the Middle East.
Anthony Albanese will hold his third national cabinet meeting since the start of the Iran war, which has thrown global oil supply chains into chaos and caused prices to soar.
Mr Albanese downplayed expectations for tougher fuel restrictions after the meeting, framing the talks as a chance to ensure all jurisdictions in Australia were on the same page.
“This will just be an update,” he told reporters in Sydney on Wednesday.
“It is important that states and territories are informed and it is important that we work together as a nation at what is a very difficult and challenging time for the whole world,” Mr Albanese said. he said.
US President Donald Trump announced on Thursday that Iran was financially collapsing and short of cash, and suggested that the regime wanted trade to resume through the Strait of Hormuz.
In his post on his platform called Truth Social, he said, “They want the Strait of Hormuz to be opened immediately; they are short of cash! They are losing 500 Million Dollars a day.”
Trump also signaled an indefinite extension of the ceasefire in Iran.
The strait, which carried about one-fifth of the world’s oil before the war, has been effectively closed since the US and Israel attacked Iran in February.
The shutdown has led countries to scramble to find new sources of oil and refined fuel, prompting Australia to seek more shipments from its Asian neighbors.
Also in response to the global oil shock, Labor cut fuel duty and cut petrol and diesel prices by 32 cents per liter.
The three-month halving of the tax is expected to end at the end of June, but government officials have not ruled out extending the policy if the war in the Middle East continues to disrupt global supplies.
Mr Albanese pointed to volatility in international markets and warned that the war in the Middle East would have long-lasting economic effects even if resolved quickly.
When asked whether the SCT would be extended, he said, “We have called for the fuel tax to remain there until June 30.”
“This is a volatile and turbulent time in the world. We’ve been very open about that. We’re not trying to pretend that’s not the case.”
