Australia is halving the fuel excise on gasoline and diesel for three months in a bid to alleviate financial stress from spiking fuel prices, the government said on Monday.
The measure would reduce the cost of filling up a tank by about US$13, or AUS$19, according to the government, which has taken several measures to protect fuel supply and consumers from price shocks since the war in the Middle East began a month ago.
Alongside the halving of the fuel excise duty on gasoline and diesel, Australia’s government will also reduce the Heavy Vehicle Road User Charge to zero for three months to help truckers continue their vital work, and will also defer the next scheduled increase in this charge by six months.
Earlier this month, the government of Prime Minister Anthony Albanese lowered Australia’s fuel quality standards to allow higher sulfur levels for the next 60 days.
The government has also released 20% of Australia’s gasoline and diesel fuel reserves, targeted at regional areas.
“While Australia’s fuel supply outlook remains secure in the near term because of the actions the Albanese Government has taken, the longer this war goes the worse the impacts will be,” the Australian government said today.
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“We are acting now to prepare and shield Australians.”
On Monday, the government announced a National Fuel Security Plan, which is currently at Level 2 out of four levels. Under the current Level 2 status, fuel supply continues to operate effectively, but localized supply disruptions occur.
Over the weekend, the Government said it would introduce amendments to the Export Finance and Insurance Corporation Act, formalizing its ability to underwrite additional cargoes and other vital strategic reserves as needed.
“This support from the Government will not be business as usual. It has to be additional supplies that are available on the international market, and it literally will be underwriting the purchase of shiploads of fuel to get here to Australia,” Albanese said on Saturday.
By Tsvetana Paraskova for Oilprice.com
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