Temporary fuel tax cut likely to remain temporary

Australia’s temporary fuel excise tax cut, which has lowered petrol prices, is likely to remain the same, Federal Energy Minister Chris Bowen said.

The three-month cut in fuel taxes began in April in response to rising prices caused by the US-Israeli-led war against Iran and will end at the end of June.

Prime Minister Anthony Albanese neither ruled out nor confirmed that he would extend the measure, which would cut petrol and diesel prices by 26.3 cents per litre.

“(Mr Albanese) made it clear that we will continue to monitor the situation,” Mr Bowen told reporters on Saturday. he said.

“But the excise tax was a temporary measure and we foresee it as a temporary measure.”

The May 12 federal budget had no money to extend the excise tax, but it did include $3.2 billion for new government-controlled fuel reserves.

The three-month consumption tax cut cost the federal budget $2.9 billion.

Mr Bowen, who provides regular updates on Australia’s fuel stocks, said an extra 50 million liters of diesel had been secured as a buffer for Western Australia.

Mr Bowen said the country had an additional 50 million liters of jet fuel in stockpiles due to “international concerns” over jet fuel levels.

This comes after the government announced on Tuesday that a shipment of around 100 million liters of extra jet fuel from China had been secured and would start arriving in June.

Australia has 43 days worth of gasoline, 31 days of jet fuel and 38 days of diesel fuel as part of its fuel reserves.

The war in Iran resulted in the closure of the Strait of Hormuz, through which one fifth of the world’s oil supply passes, and caused fluctuations in global markets.

Mr Bowen said the Australian government wanted to see a solution to the conflict but was not a central player.