The news that the Federal Government has extended its fuel excise relief for another month will come as a relief to many budget-conscious grey nomads.
However, the initial 32 cents a litre relief has now been halved to 16 cents. The Government says this will save motorists around $11 per tank.
Back in March, the Government announced a three-month cut to the fuel excise of 32 cents per litre. It did so as the crisis in the Middle East escalated and the Strait of Hormuz was closed to shipping, sparking a steep spike in fuel prices.
The Government said it was a temporary measure designed to help take the sting out of petrol prices and help Australians with the cost of living.
Fuel prices are well down from their peak. PIC: Dozza
In its recent statement announcing the extension of a 16 cent fuel excise relief, the Government said it also acknowledged the contribution of the States and Territories to use their GST revenue to fund a 5.7% portion of the fuel excise cut over the last three months … and said it will seek support from the states for July at National Cabinet today.
It said the extension to the fuel excise cut was a recognition that economic and fuel stability recovery will take time, and said its action provided a graduated return to normal settings for the fuel excise.
It also welcomed the recent agreement between the United States and Iran, including reopening the Strait of Hormuz.
“We’ll continue to do what we can to shield Australians from the worst impacts of this conflict including securing additional fuel from our partners,” the statement said. “Despite the welcome and substantial drop in the price of petrol recently, we recognise people are still under pressure … this extra month of fuel discount will help Australian motorists and businesses with the cost of living as this support tapers off.”
The Australian Competition and Consumer Commission (ACCC) is continuing to monitor fuel prices to help ensure that the lower excise rate is fully passed on at the bowser, backed by stronger penalties and additional enforcement resourcing.
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