Drivers warned not to expect extended fuel excise cut
Despite the flare-up of the war in the Middle East, it seems unlikely that the fuel consumption tax for drivers will be extended.
The Labor government halved fuel duty for three months from April in response to rising prices as a result of the US-Israeli war with Iran, saving drivers 32 cents a litre.
The measure was extended for another month in July, but at a reduced rate of 16 cents per litre.
The extension will end on August 2.
New tensions between the US and Iran have caused Brent crude oil prices to rise above US$100 per barrel, but Prime Minister Anthony Albanese has stated that a continuation of the consumption tax cut is unlikely.
“That’s not in our planning at the moment,” he told ABC’s Insiders program on Sunday.
“(Fuel) usage has decreased and is actually lower than it was a year ago, but more importantly, we’ve maintained supply.”
Mr Albanese stated that some fuel-related measures were on the way.
“We will also have announcements about fuel in the coming days and weeks,” he said.
“We will continue to examine things that happen in the budget during this process.”
Drivers were warned that gasoline prices could rise above $2 per liter due to the withdrawal of consumption discounts.
Average prices for unleaded gasoline have risen above $1.80 per liter in all state capitals in recent days; At the end of June it was about $1.50.
The increase in oil prices came as pro-Iranian Houthi militants opened fire on Saudi oil facilities on the Red Sea coast and Tehran again tried to stop shipments through the Strait of Hormuz.
US attacks have resumed in response to Iran’s attacks on ships passing through the strait, an important oil transit route.
Mr Albanese said the continuation of the conflict would lead to economic pressure.
“The war is having an impact on Australia and the longer it continues the greater the impact it will have,” he said.
“This is a war on the other side of the world.
“We are not the protagonists of this incident, but we are affected by it and have repeatedly called for de-escalation.”
