The federal government has extended fuel excise relief for another month, making petrol and diesel 16 cents per litre cheaper compared to normal prices for July.
In a move it says will save Australians around $11 per tank, the temporary support will see the heavy vehicle road user charge be reduced by 16 cents per litre.
State and territory governments have used their GST revenue to fund a 5.7 per cent portion of the fuel excise cut over recent months, with National Cabinet to seek support from the states for July today.
“This decision recognises that although fuel prices have moderated significantly from their peaks, people remain under cost-of-living pressure,” federal transport minister Catherine King says.
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“Whether it’s slashing the fuel tax, slashing the road user charge for truckies or tax cuts for every taxpayer, we’re taking action to ease pressure on Australians.
“Our economic plan is all about helping Australians with the cost of living, addressing inflation and making our economy more productive and extending the fuel excise is an important part of that plan.”
The Australian Trucking Association (ATA) has welcomed the government’s announcement to extend its fuel excise and truck road user charge relief to the end of July, but with new rates.
The relief package was originally scheduled to end on June 30, which would have seen a 32 cents per litre increase in fuel excise and a 32.4 cents per litre increase in the road user charge.
ATA CEO Mathew Munro says the extension recognises trucking businesses would have had difficulty managing such a large increase.
“There are trucking businesses teetering on the brink, and such a large jump could have been disastrous for them,” Munro says.
“Trucking businesses and their customers will still face an increase in effective tax rate on fuel, but it will be more manageable.
“The ATA would have preferred to see the full reduction extended until the crisis is completely over, but the government’s decision will soften the blow and give it the scope to extend the timing of further increases if there are delays in the US-Iran negotiations under last week’s MoU.”
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