Albanese does not rule out extension to fuel tax cut
Anthony Albanese did not rule out extending the fuel excise tax cut amid “volatile” global economic conditions, but signaled that the decision would be made towards the end of June.
Making the breakfast radio rounds on Thursday, the Prime Minister described the three-month tax cut as “very costly” but acknowledged it was “making a difference” to drivers and truckers.
He told 2Day FM in Sydney: “We will take stock. These are really volatile times. We don’t know when this war in the Middle East will end.”
The Albanian government temporarily halved the fuel tax from April 1 to June 30, reducing the cost of fuel by 26.3 cents per liter.
It cost the federal budget $2.9 billion.
The move was aimed at escaping the impact of global energy shocks triggered by Tehran’s de facto closure of the Strait of Hormuz following the US and Israel’s attack on Iran on February 28.
The United States has since implemented a blockade of Iran’s coastline, including its ports, as part of a military effort to keep ships passing through the waterway.
As a result, crude oil prices have remained volatile since then, hovering above the critical economic threshold of US$100 per barrel.
The ceasefire between the USA and Iran came into force on April 8.
US President Donald Trump announced this week that his administration is in the final stages of negotiations with Iran.
However, he also warned Iran that US attacks would intensify if an agreement was not reached.
Iran has further tightened its grip on the Strait of Hormuz, announcing overnight that the Persian Gulf Strait Authority has established a controlled maritime “surveillance area” in the vital waterways.
Ships transiting through the region stretching from Kuh-e Mubarak in Iran to south of Fujairah in the UAE will need to obtain transit permits.
Australia has been involved in international diplomatic efforts to protect shipping in the Strait of Hormuz.
Defense Minister Richard Marles said last week Australia would deploy E-7A Wedgetail aircraft as part of global peacekeeping efforts led by the US and France.
RAAF surveillance aircraft were sent to the Middle East in March at the request of the United Arab Emirates.
Mr Albanese said at the time that this was to provide “defense support” to Gulf states against retaliatory strikes launched by Tehran following attacks by the US and Israel in February.
