Australia expands fuel excise cut with state support
- Sydney (2 April)
The Australian Government has cut the country’s fuel excise rate by 10.9%, from A$0.26/litre to A$0.21/litre, until 30 June, using excess state and territorial GST revenue linked to elevated fuel prices.
Australia’s National Cabinet – which includes federal, state, and territorial leaders – approved the A$400 million measure today, Prime Minister Anthony Albanese said in a statement.
On 30 March, the Albanese Government cut Australia’s fuel excise rate from A$0.53/litre to A$0.26/litre from 1 April – 30 June, using federal funds. It has also suspended Australia’s Heavy Vehicle Road User Charge for those three months.
New South Wales’ average Unleaded 91 octane petrol price dropped from A$2.50/litre on 31 March to A$2.33/litre on 2 April, largely because of the excise cut, data from government-run price monitor FuelCheck show.
But the price of Brent crude oil rose from $103.97/barrel to $105.79/barrel (A$71.63/barrel – A$72.85/barrel) over the same period, according to Trading Economics. It has increased by $31.55/barrel since the start of March because of the ongoing US-Israeli war in Iran.
The Albanese Government has announced fuel-related support to businesses over recent days. It will issue up to A$1 billion in interest-free loans to trucking, freight, fuel, and fertiliser firms, Prime Minister Albanese told the National Press Club today.
The Australian Tax Office (ATO) also plans to provide temporary tax relief to businesses impacted by fuel prices, Treasurer Jim Chalmers announced on 1 April. The relief will take multiple forms, including payment plans, interest waivers, and penalty waivers.
State and federal governments are responding to ongoing fuel challenges using Australia’s National Fuel Strategy (NFS). The NFS has four response levels linked to the severity of shortages. Australia is currently at Level 2, indicating effective fuel supply chains with some localised disruptions.
Australia had 39 days of gasoline reserves, 30 days of kerosene reserves, and 30 days of diesel reserves on 24 March, according to the latest data from the Department of Climate Change, Energy, the Environment, and Water (DCCEEW). The agency will publish Australia’s 31 March reserves on 3 April.
At this stage, governments are encouraging people to buy only as much fuel as they need and to consider using public transport.
“If you’re hitting the road, don’t take more fuel than you need - just fill up like you normally would .... And over coming weeks, if you can switch to catching the train or bus or tram to work, do so,” Prime Minister Albanese told Australians in an Address to the Nation on 1 April.
By Avinash Govind