Australia Halves Fuel Tax to Curb Prices as Oil Surges Above $116

Australia's government announced a three-month halving of the fuel excise tax.

“Australia’s government will slash petrol and diesel taxes by half amid a surge in fuel prices prompted by the US-Israel war on Iran”

Al Jazeera

Prime Minister Albanese said the move would save motorists nearly $19 on a 65-litre tank.

Al Jazeera

Average prices rose 10 percent for diesel and 8 percent for petrol in the week to March 25.

The government suspended the heavy vehicle road user charge for three months.

The tax cut is estimated to cost the budget A$2.55 billion.

CarExpert

Opposition Leader Scott Morrison criticized the move as a short-term political fix.

Economists warned the fiscal move collides with the Reserve Bank's tightening cycle.

“Damion Smy Record fuel prices spark gouging probe as government threatens crackdown 59 Minutes Ago The Australian federal government will halve the current fuel excise for at least three months as part of a national fuel security plan, following a cabinet meeting in Canberra this morning”

CarExpert

The RBA views broad-based stimulus as counterproductive when inflation remains sticky.

Opposition Leader Morrison criticized the excise cuts as a political fix.

Market analysts say elevated crude prices could limit retail pass-through.

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