Govt has no plans to cut petrol tax: PM
Petrol price hike expected for ChristmasThe federal government has no plans to slash the fuel excise despite predictions petrol prices could soar to $1.50 a litre by Christmas.
Prime Minister John Howard says he has not discussed cutting petrol taxes with his colleagues.
Speculation that petrol could cost $1.50 a litre by Christmas was an exaggeration, he said
"We don't have any plans to do that (cut fuel excise) now, no," Mr Howard told Southern Cross Broadcasting.
"We are obviously worried and it is going up because of the world price of oil.
"Whether it goes to $1.50, I'm not sure about that, I think that is perhaps a little alarmist.
"But it is a lot higher than I would like."
Overnight, light sweet crude oil for December delivery closed at $US95.46 a barrel on the New York Mercantile Exchange.
Mr Howard said Australia's strong local currency had softened the blow of booming world oil prices.
"Fortunately, because of the strong dollar, the full impact of nearly $US100 a barrel in crude oil prices is not as painful as it would otherwise be," he said.
"It is still painful - very, very painful - but it is being cushioned to some extent by the very strong Australian dollar, which is partly due, only partly due, to the strength of the Australian economy.
"The dominant driver is the weakness of the American dollar, but there is some contribution in Australia being an attractive place for investment."
Source: AAP 2007
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