Motorists brace for higher prices as fuel tax cut ends
Australia is unlikely to extend the temporary halving of the fuel excise, as conflict in the Middle East breaks out ending the fragile ceasefire.
Motorists and transport businesses are being warned to expect an end to a cut to the fuel tax as conflict flares up between Iran and the US.
The $2.5 billion measure is planned to run out at the end of June, as Transport Minister Catherine King indicated it would not be extended further.
âWeâre consulting, obviously, with industry about the impact of that, but people should at this stage expect that itâs coming off at the end of June,â she told ABC News Breakfast on Wednesday.
âWe are doing everything we can to shield Australians from this conflict in the Middle East.â
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King said the governmentâs most senior ministers, including Prime Minister Anthony Albanese, have all been working âincredibly hardâ to secure Australiaâs fuel supply by shoring up key international relationships with partner nations.
The US military has begun launching âself defenceâ strikes against Iran in response to the downing of an American Apache helicopter.
US President Donald Trump earlier said his nation âmust respondâ to the attack.
Iranian state media confirmed explosions were reported in Sirik, a port city along the Strait of Hormuz.
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King said Australia urged diplomatic solutions to end the conflict in the crucial oil passageway.
âWe want to urge all parties to continue to negotiate that,â she said.
âThis is a pretty fragile ceasefire, and youâre seeing that borne out unfortunately.â
Labor has since introduced a $10 billion energy and fertiliser security package to secure the nationâs supply chains.
Australiaâs onshore fuel reserves will be expanded to at least 50 days and a permanent, government-owned fuel reserve of about a billion litres will be established.
The minimum stock-holding obligation for suppliers will also be increased by about 10 days for every type of fuel.
-with AAP
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