Coalition Plans Fuel Price Shield to Protect Drivers from Global Oil Shocks

The Australian opposition has proposed a policy to protect drivers from global oil price shocks. Under the 'fuel price shield', fuel taxes would be automatically cut when the cost of crude oil exceeds $US100 per barrel for two weeks on average.

The coalition's plan would halve the fuel excise, saving drivers around 27c per litre on petrol or diesel, and halt the heavy road user charge. This would cost an estimated almost $1 billion per month while in operation.

Opposition Leader Angus Taylor said the policy would be funded by cutting the tobacco excise by 80%, raising $8 billion of funding. He described it as 'anti-inflationary', taking pressure off transport costs and providing relief for motorists when prices approach $3 per litre at the bowser.