Albanese opens door to Fuel excise cut extension
Anthony Albanese signalled on Monday that the federal government is open to extending the temporary fuel excise cut, after a peace deal announcement eased pressure on global oil markets. He said the government would make an assessment over the coming period and issue an appropriate announcement.
That places motorists in the middle of a budget decision tied to a three-month cut that has already cost $2.55bn. The government has been downplaying the prospect of extending it, even as the prime minister said the measure has been important in supporting people on cost-of-living pressures.
Albanese in Canberra
Speaking to reporters in Canberra on Monday, Albanese said: "We’ll make an assessment over the coming period, and we’ll make an appropriate announcement." He also said: "We know that the end of the conflict doesn’t mean that we’re back to business as usual, and we know that that [fuel excise cut] has been really important in providing support for people. One of the things that my government has been concerned about is what practical measures we can take on cost-of-living measures."
He added: "Whilst we want to see the conflict end, and we hope that that has occurred, we also want to be very conscious of the fact that that doesn’t mean that everything returns to normal in just a day or indeed a week or even a month, it will be at a minimum many months before things return to normal."
Bowen and 30 June
On Saturday, Chris Bowen said the measure was always intended to be temporary and that it "remains the plan" for it to end on 30 June. The government has also paused the heavy vehicle road user charge as part of the same temporary package.
The budget cost of those two measures stands at $2.55bn. That makes any extension a direct spending decision, not just a pricing one, and it comes as ministers weigh the immediate relief for drivers against the cost of keeping the cut in place.
Oil price and Geneva
Albanese welcomed the announcement of a peace deal between the US and Iran to end the war and reopen the strait of Hormuz, a shipping lane vital to global oil trade. On Monday, Brent crude dropped below US$84 a barrel shortly after the agreement was announced.
Pakistan, acting as mediator, said the official signing of the peace deal would take place in Geneva on Friday. Albanese said it would take at least many months for global oil trade to return to normal after the effective blockade of the strait is lifted, which is why the fuel decision is being treated as a live cost-of-living call rather than a routine tax matter.
