Coalition Unveils Fuel Price Shield for Truckies Amid Global Oil Shocks

The Coalition has announced a new policy aimed at providing temporary relief to truck operators from fuel costs during major global oil price shocks. Under the proposed Fuel Price Shield, fuel excise would automatically be halved when the two-week average closing price of Brent crude oil rises above US$100 a barrel.

This reduction would translate to about 27 cents a litre off the tax on petrol and diesel. Additionally, the heavy vehicle road user charge would fall from 32.4 cents a litre to zero, allowing truck and bus operators to claim the full 26.85 cents a litre fuel excise as a fuel tax credit.

The Coalition estimates this policy would cost about $950 million for every month it is activated. According to Shadow Minister for Infrastructure and Transport Bridget McKenzie, 'Truckies cannot simply stop driving when oil prices spike. Fuel is one of their biggest costs, and when that cost goes through the roof it flows straight through the supply chain to every supermarket shelf and every small business.'

The relief would remain in place until the eight-week average Brent crude price fell below US$100 a barrel or three months had passed, whichever came first. The Coalition's analysis found its policy would have been triggered twice during the past five years.