Fuel price relief: Excise cut for three months

The Federal Government has announced its halving the fuel excise for three months in an attempt to ease the ludicrous fuel prices being inflicted on motorists nationwide.

The announcement was made after a national cabinet meeting, the same one in which the National Fuel Security Plan was agreed upon.

Prices of unleaded, premium unleaded, 98 RON and diesel have skyrocketed in recent weeks as the conflict in the Middle East continues to rage, causing unrest and uncertainty for governments and people around the globe.

Reduced supply and mass panic buying have seen hundreds of service stations run out of diesel around the country, despite the astronomical prices.

The temporary excise cut should see fuel prices come down some 26 cents per litre and save motorists roughly $19 on a 65-litre tank of fuel – we say ‘should’ because it will ultimately come down to the fuel retailers to lower the prices and pass the savings onto consumers.

Thankfully that’s where the ACCC comes in; the consumer watchdog has been actively monitoring fuel prices and will be on standby with on-the-spot fines for retailers not reflecting the cut in their fuel prices.

As for the National Fuel Security Plan, it will essentially force fuel companies to maintain a physical reserve of petrol, diesel, and jet fuel within Australia to act as an emergency buffer, with the government providing financial subsidies to local refineries to keep them open, ensuring a baseline of domestic production.

With all going to plan, fuel prices should become somewhat more palatable as of Wednesday.

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