JAKARTA - The Australian government has decided to cut gasoline and diesel taxes in half starting April 1 to June 30, 2026. This step was taken when the world crude oil price broke through 116 US dollars per barrel, amid the US-Israeli war against Iran which continues to push the energy crisis.
Aljazeera, quoted on Monday, March 30, reported that Australian Prime Minister Anthony Albanese announced the policy on Monday in Canberra. According to him, the fuel tax cut was made in response to the increasing cost pressure on the public.
Albanese said the policy would cut the price of petrol by 26.3 cents per litre. With the scheme, drivers are expected to save almost 19 Australian dollars for a 65-litre tank. The government is also suspending levies on heavy vehicles for three months.
"We understand the cost pressures people are facing are very real when the impact of war in other parts of the world is felt directly here," Albanese said.
However, the effectiveness of the measure was immediately questioned. Aljazeera reported that a spokesman for the National Roads and Motorists' Association, Peter Khoury, assessed that tax cuts would only have a small impact because gasoline prices had risen by about 33 Australian cents per liter in the last two weeks.
"It's not the tax that drives the price up, it's the price of oil," Khoury told Aljazeera.
The problem with Australia is not simple. Although it is a major exporter of coal and natural gas, the country still relies on imports for about 80 percent of its refined fuel needs. This dependence makes global turmoil quickly felt in the domestic market.
According to the Australian competition watchdog, average prices for both diesel and petrol in the five largest cities rose by 10 percent and 8 percent respectively in the week to March 25. Khoury also reminded that the Australian economy is highly dependent on diesel as food distribution and major services are supported by heavy vehicles.
So far, the Australian government has not taken steps to save energy such as rationing fuel or working from home. Even so, officials have asked the public to refrain from consuming fuel.
Aljazeera said Energy Minister Chris Bowen last week said more than 500 gas stations had run out of at least one type of fuel due to panic buying. However, at the weekend, Bowen confirmed that Australia's energy supply was still safe. All fuel shipments are said to arrive on schedule. Australia is also said to have an emergency stock of gasoline for 39 days, as well as reserves of solar and jet fuel of around 30 days each.
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