Coalition proposes fuel discount when global oil hits $100 a barrel
The Coalition will halve fuel excise when Brent crude hits $US100, funded by $8 billion from tobacco tax cuts.
Opposition Leader Angus Taylor announced the Fuel Price Shield policy, which would cut fuel tax when global oil prices spike. The cut kicks in when Brent crude oil averages $US100 a barrel over two weeks, which Taylor said means petrol would hit about $3 a litre.
Taylor said it would save drivers about $15 per tank. The Coalition plans to fund the measure through $8 billion from cuts to the tobacco excise tax.
Taylor also proposed eliminating a 32-cent road user charge for heavy vehicles to ease transport costs. Treasurer Jim Chalmers dismissed the policy as uncapped and unfunded, suggesting it prioritised politics over economics.
Economist Chris Richardson warned that cutting fuel tax adds inflation pressures, though Westpac's Luci Ellis told ABC's 7.30 the last fuel excise cut suggested such a measure could help curb inflation.
- Brent crude $US100 per barrel
- Trigger price
- About $15
- Estimated saving per tank
- $8 billion
- Funding from tobacco cuts
- 32 cents per heavy vehicle
- Road user charge
Why it mattersThe policy offers concrete relief for motorists amid rising fuel prices, though economists debate whether it would worsen inflation.
AustraliaIf elected, the Coalition would cut fuel costs when global oil spikes, potentially affecting household budgets and transport costs across Australia.
✓ Claims checked against the source and corrected before publish. checked 4 d ago
