Australia to Reduce Fuel Tax Amid Global Energy Crisis

Australian Government Announces Tax Cut Amid Rising Fuel Prices

The Australian government has announced a tax cut on petrol and diesel to help alleviate the financial stress caused by rising energy prices. The move was made public by Prime Minister Anthony Albanese, who stated that the tax reduction would take effect from April 1 to June 30.

As of Monday, the international benchmark for crude oil had reached $116 per barrel, its highest level in nearly two weeks, due to the escalating conflict in the Middle East. In response, the government will slash the fuel excise by half, resulting in a reduction of 26.3 Australian cents per litre in petrol prices.

According to the Prime Minister, this move aims to provide relief to motorists who are experiencing financial strain due to rising energy costs. The tax cut is expected to save motorists nearly $19 on a 65-litre tank of fuel.

Additionally, the government will suspend its charge on heavy vehicles for three months. This measure is aimed at reducing the burden on industries that rely heavily on diesel, such as food and service delivery.

The National Roads and Motorists’ Association has expressed skepticism about the effectiveness of the tax cut, stating that petrol prices have risen significantly in recent weeks despite previous similar measures. The association’s spokesman noted that Australia’s economy relies heavily on diesel, and that a significant portion of its fuel needs are sourced from overseas.

Meanwhile, officials have urged the public to avoid excessive fuel consumption as part of efforts to maintain energy security. Despite concerns about rising fuel prices, the government has maintained that Australia’s energy supply remains secure, with all expected fuel deliveries arriving as scheduled.

Source: Al Jazeera