Should all drivers get fuel relief or only those who struggle most
The Coalition proposes halving fuel excise when global oil prices stay above US$100 a barrel, saving drivers about 27 cents a litre.
The Coalition's Fuel Price Shield would cut fuel excise in half when oil prices stay above US$100 a barrel for two weeks, affecting every driver at the bowser. Nationals leader Bridget McKenzie says the roughly $950 million-a-month policy should help trucks and businesses, not just families.
Independent MP Allegra Spender disagrees, arguing blanket relief adds to inflation. McKenzie says tobacco excise funds the cut, so it doesn't add to the budget.
Spender argues targeted help for trucks and households makes more sense than giving a millionaire the same discount as a struggling family. The Reserve Bank is watching closely.
Governor Michele Bullock said oil prices remain elevated and inflation risks stay tilted to the upside.
- US$100 a barrel
- Oil price trigger
- 27 cents
- Fuel savings per litre
- roughly $950 million
- Monthly policy cost
- Bridget McKenzie
- Nationals leader
Why it mattersIf the policy passes, every Australian driver pays less at the bowser, but it could push inflation higher and cost the budget hundreds of millions per month.
AustraliaAustralian petrol and diesel prices would fall by about 27 cents a litre if global oil stays expensive, cutting costs for drivers, truckies, and farmers across the country.
✓ Claims checked against the source and corrected before publish. checked 2 d ago
