The pre-election promise – which appears to have bipartisan support – could see petrol and diesel prices temporarily ease by almost 10 per cent.
Sky-high petrol and diesel prices could fall by almost 10 per cent before the end of this week, with the Federal Government reportedly set to trim the current excise.
The cost of fuel has shot to historic highs in recent months, peaking at an average of almost $2.25 per litre nationally amid ongoing supply chain complications and the invasion of Ukraine.
However, according to a spate of NewsCorp and Nine publications privy to so-far-unpublished budget plans, the existing 44.2c (per litre) tax will be cut by between 5c and 20c from midnight on Tuesday in a bid to ease prices.
The policy is expected to remain in place for approximately six months, with the AFR reporting: “[Three months] would be regarded cynically by voters, while 12 months would be too expensive.”
It is so far unclear how significantly the move will affect prices at the pump. However, if retailers are mandated to pass all savings on to consumers the cost of petrol would likely fall from approximately $2.20 per litre to $2.00.
Announced just months out from the next Federal election and following repeated claims the excise would not be cut, the move has been characterised by some members of the opposition as a cynical attempt to “buy votes.”
However, Prime Minister Scott Morrison told journalists today: “[The budget] is about the long-term plan that Australians need to grow their economy and deal with the uncertainties that are ahead.”
While critiquing the last-minute policy as “pretending to care,” Shadow Treasurer Dr Jim Chalmers told media the opposition is “unlikely to stand in the way” of any attempt to lower fuel prices.
You can track the price of petrol and diesel in all eight Australian states and territories day-by-day by clicking here. Stay tuned to Drive for all the latest.