Australian Prime Minister Anthony Albanese said on Monday the government would halve the excise on fuel and diesel and remove the heavy road user charge for three months to help households cope with a surge in costs driven by the Iran war.
Halving the tax would reduce the cost of fuel by 26.3 Australian cents per litre, Albanese said.
The total cost to the government would be about A$2.55 billion ($1.75 billion), Treasurer Jim Chalmers said at a joint press conference with the prime minister and Energy Minister Chris Bowen.
Some 20% of the world's oil was transported through the Strait of Hormuz before the U.S.-Israel war against Iran choked off supplies. The price of Brent has surged 59% in March, the steepest monthly gain in history, and was at $115.66 per barrel when the market opened on Monday.
The measures are the latest in a series of fuel security measures adopted by Canberra since the war began on 28 February. It has previously announced the release of petrol and diesel from domestic reserves and the temporary relaxation of fuel quality standards.
The average retail price of a litre of diesel rose to more than A$3 in Australia last week and petrol to A$2.50, according to a 29 March report from the Australian Petroleum Institute.
"We understand the cost pressures for people are very real as the impact of the war on the other side of the world plays out right here," Albanese told the press conference in Canberra.
The government also confirmed it had adopted a national fuel security plan with all state governments agreeing to work together to deliver fuel to regional areas where it is needed most.
Albanese said there were four levels of action and Australia was at level two, which was to keep the country moving. The highest level would be to ensure critical services were maintained.
“While Australia's fuel supply outlook remains secure in the near term, we need to be very clear as well with Australians that the longer this war goes on, the worse the impacts will be,” Albanese said.
Australia has its highest fuel stocks in 15 years, but they are still far belowInternational Energy Agency recommendations of 90 days.
The latest government numbers as of last week said Australia had enough for 30 days of diesel, 30 days of jet fuel and 39 days of petrol.
It has also adopted the Export Finance and Insurance Corporation Amendment which will allow the government to underwrite the purchase of spot cargoes of fuel as prices rise via credit agency Export Finance Australia.
Bowen said that spot cargoes were available but expensive and smaller industry players were not able to take the risk.
“These new fuel security powers will put Australia in a strong position, securing fuel supply where it may be cost prohibitive for private suppliers to source on commercial terms, without government support,” Bowen said in a statement.
Pakistan's political leadership on Monday welcomed a breakthrough agreement between the U.S. and Iran aimed at ending more than three months of confli...
A senior U.S. official said on Monday that the memorandum of understanding linked to the U.S.-Iran agreement had been signed by President Donald Trump...
Iran has said that reaching an agreement with the U.S. to end the war does not mean Tehran will overlook what it describes as war crimes committed aga...
Uzbekistan and five partner countries have signed a protocol to further develop the CASCA+ railway corridor, a growing transport route linking Central...
The UK has become the latest country to annouce a social media ban for children under 16. British Prime Minister Keir Starmer made the announcement on...
Uzbekistan and five partner countries have signed a protocol to further develop the CASCA+ railway corridor, a growing transport route linking Central Asia, the South Caucasus and Türkiye that provides an alternative connection between Asian and European markets.
An armed unmanned aerial vehicle crashed on a Black Sea beach in northern Türkiye on Sunday, prompting a security operation and the controlled detonation of its munitions.
Spain has received around 900,000 applications from undocumented migrants seeking legal status under a government regularisation programme. The influx has far exceeded initial expectations, the Migration Ministry said on Monday.
A Ukrainian man has been found guilty of carrying out a series of arson attacks on properties linked to British Prime Minister Keir Starmer after being recruited by a mystery figure known only as "EL Money".
Details of a reported draft memorandum of understanding between the United States and Iran offer the clearest picture yet of how both sides plan to end months of conflict and move towards a longer-term settlement.
The U.S. and Iran say they have reached a deal to end their conflict, with an immediate ceasefire and reopening of the Strait of Hormuz after the lifting of the U.S. naval blockade. Talks will continue over the next 60 days to finalise the agreement
A senior U.S. official said on Monday that the memorandum of understanding linked to the U.S.-Iran agreement had been signed by President Donald Trump, Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Qalibaf.
U.S. President Donald Trump has said a peace agreement with Iran is scheduled to be signed on Sunday in a post on social media, despite Tehran's Foreign Ministry spokesperson Esmaeil Baghaei saying no deal would be approved this weekend.
Israeli Prime Minister Benjamin Netanyahu has told U.S. President Donald Trump that Israel does not consider itself bound by a Lebanon-related provision in an emerging agreement with Iran, according to Israeli officials.
A senior U.S. official said on Monday that the memorandum of understanding linked to the U.S.-Iran agreement had been signed by President Donald Trump, Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Qalibaf.
U.S. and Iranian officials said on Sunday they have agreed on a deal to end their war, halt the U.S. blockade of Iran and reopen the Strait of Hormuz, possibly leading to lower energy prices once oil shipments resume through the critical waterway.
Details of a reported draft memorandum of understanding between the United States and Iran offer the clearest picture yet of how both sides plan to end months of conflict and move towards a longer-term settlement.
The U.S. and Iran say they have reached a deal to end their conflict, with an immediate ceasefire and reopening of the Strait of Hormuz after the lifting of the U.S. naval blockade. Talks will continue over the next 60 days to finalise the agreement
A senior Iranian official told Reuters that a draft memorandum with the U.S. covers issues including Iran’s nuclear programme, reopening the Strait of Hormuz, and U.S. waivers on oil sanctions, with further negotiations expected within 60 days of an initial agreement.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment