Fuel excise extended but lower relief to come
The cost reduction on Bowser has been extended for another month, but the savings won’t be as significant.
Prime Minister Anthony Albanese announced a limited extension of fuel duty, making petrol and diesel 16 cents per liter cheaper than their full price in July.
Current savings have reached 32 cents per litre, following the cut three months ago due to the outbreak of war in the Middle East and shrinking global oil supplies.
This reduction is scheduled to end on June 30, costing the federal budget an estimated $2.9 billion in lost revenue by then.
“The decision recognizes that despite the positive and significant decline in oil prices recently, we know people are still under pressure,” Mr Albanese said.
“Whether it’s cuts to fuel duty, road user charges for trucks or tax cuts for every taxpayer, we’re taking action to ease the pressure on Australians.
“We will continue to do all we can to protect Australians from the worst effects of this conflict, including securing additional fuel from our partners.”
The long-awaited approval of the continued, albeit reduced, savings coincides with the reopening of the Strait of Hormuz and a related agreement between the United States and Iran to end hostilities.
However, it is not yet known how long the waterway will remain open.
The Iranian military said it would close the strait again overnight due to Israel’s ceasefire violations in Lebanon.
Australia currently has 44 days of oil in its reserves; That’s about eight days longer than when the United States first bombed Iran in late February.
Diesel stocks run in 39 days, jet fuel in 32 days.
There are 51 tankers in the water, heading to Australia with 3.9 billion liters of fuel for delivery next month.
Finance Minister Jim Chalmers said he hoped the temporary support would still ease some of the headwinds in gas prices and help with living costs.
“Despite the welcome and significant decline in oil prices recently, we recognize that people are still under pressure,” he said.
“This extra monthly fuel rebate will help Australian motorists and businesses with living costs as this support decreases.”
The federal government confirmed on Saturday that the second week of June marked the highest level of fuel held in Australia since the minimum stockpile requirement comes into force in 2023.
Last week it was the second highest at 6.3 billion liters.
Average petrol prices in the capital range between $1.65 and $1.92 per litre, according to the Australian Competition and Consumer Commission.
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