Coalition Promises Fuel Price Shield to Protect Motorists from Global Oil Shocks
The Australian opposition has proposed a 'fuel price shield' that would automatically halve fuel taxes when global oil prices reach $US100 per barrel. The policy, announced by Opposition Leader Angus Taylor, aims to protect motorists from the worst of global oil price shocks.
The scheme would see the fuel excise cut in half for up to three months whenever crude oil averaged above $US100 a barrel over two weeks. This would save drivers around 27c per litre on petrol or diesel and halt the heavy road user charge during that period.
Taylor said the policy would be funded by cutting the tobacco excise by 80%, which is expected to raise $8 billion in funding. He described the plan as 'anti-inflationary', arguing it would take pressure off transport costs and provide relief for motorists when prices approach $3 per litre at the bowser.
Labor has not ruled out another temporary fuel excise cut if international conditions deteriorate, while Treasurer Jim Chalmers dismissed the coalition policy as a 'political move' in response to rising voter support for One Nation.