Australian Prime Minister Anthony Albanese revealed plans to slash the government’s fuel tax by half in response to soaring fuel prices. The tax reduction, effective for three months starting Wednesday, aims to lower petrol and diesel costs by 26.3 cents per liter. This move comes as fuel prices surged due to the oil crisis stemming from conflicts in the Middle East.
Albanese emphasized the government’s recognition of the financial strain on Australians, with the national average price for regular unleaded fuel hitting a record high of 2.53 Australian dollars per liter. The cost of diesel also spiked, reaching 3.1 Australian dollars per liter. In addition to the fuel tax cut, the government will eliminate the 32.4 cents per liter road user charge for heavy vehicle diesel usage for the same three-month period.
Treasurer Jim Chalmers estimated that these relief measures would result in a revenue loss of around 2.55 billion Australian dollars. Albanese highlighted the importance of providing economic relief during the ongoing Middle East conflict, emphasizing the government’s commitment to supporting citizens responsibly. Furthermore, he announced a national plan agreed upon by state and territory leaders to enhance fuel security coordination among governments.
