Coalition Pledges 'Fuel Price Shield' to Protect Motorists from Oil Shocks

The Australian opposition has proposed a 'fuel price shield' to protect motorists from global oil price shocks. The policy, announced by Opposition Leader Angus Taylor, would automatically cut fuel taxes when the cost of crude oil tops $US100 per barrel for two weeks.

Under this plan, the fuel excise would be halved, saving drivers around 27c per litre on petrol or diesel, for up to three months. The heavy road user charge would also be halted, and the estimated cost of this policy would be nearly $1 billion per month.

The funding for this proposal comes from a cut in the tobacco excise by 80%, which is expected to raise $8 billion in revenue, according to Taylor.

Government Treasurer Jim Chalmers dismissed the coalition's plan as a political move, saying it was more about polling numbers than petrol prices. Labor has not ruled out another temporary fuel excise cut if international conditions deteriorate.