Can’t Control Wars – Just the Price at the Pump

OPINION PIECE By Federal Member for Dawson Andrew Willcox

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For regional areas like here in Dawson, where driving is not optional but essential, higher fuel prices bite hard. Even short bursts of higher prices can have a major impact on already stretched budgets.

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Families hitting the road over the September school holidays would be acutely aware of the cost to fuel up. Many may have ditched their holiday plans at the last minute or chosen to spend less at their destination to compensate.

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But it’s not just the cost of filling up the car that is hurting. Supply chains are being smashed, meaning the flow on effects are also felt in other areas, like the checkout. If farmers and truckies are paying more for diesel, the consumer ultimately pays more.

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The other unfortunate part of higher fuel prices is that inflation is also impacted. Which means interest rates don’t come down. They only go up and stay up.

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There is, of course, a lever the government could pull right now. Re-introducing a cut to the fuel excise would provide much needed relief. However, when asked last week if the government would re-introduce an excise tax cut, Treasurer Jim Chalmers said, ‘It is not something we are discussing – not something we are considering.’  

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This is something myself and my colleagues will continue to push for.

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Our newly announced policy, The Fuel Price Shield, would see the fuel excise automatically halved when Brent Crude Oil rises above $100 per barrel over a two-week period, like it is now. The policy is aimed at ensuring that major oil price shocks do not disproportionately affect Australian families and businesses. Whether you are growing produce, transporting goods, or simply filling up the tank, this policy would mean the relief is immediate.  

No debating or deliberating. Just automatic implementation.A halving of the fuel excise equates to a reduction of 27 cents per litre or around $15 off a tank for the average family car. For household budgets already stretched to the maxunder this government’s cost of living crisis, that cut would make all the difference.  

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Also included in the Fuel Price Shield, the 32 cent a litre heavy vehicle road user charge would be set to zero, which would lessen the flow-on costs of transportation. Because overall, high fuel prices mean more than just what is paid at the bowser. It means more at the checkout, more at your favourite café, and more on the mortgage.

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When the war in the Middle East kicked off earlier this year, Labor dragged their feet in taking action on skyrocketing fuel prices and addressing supply chain issues; remember their major response was to advertise, for us all to inflate our tyres and carry lighter loads. They eventually buckled to pressure and implemented the fuel excise cut, which came off mid-year. Well, fuel prices are back up to similar levels and could yet go higher. Let’s hope the government will see sense or buckle to pressure and provide the relief so desperately needed.

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The government can and should pull that excise tax lever now. They can’t control far away wars. But they have the power to lower the price at the pump.

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