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Bowen Defends Excise Cuts as Inflation, Rates to Soar
The $2.5 billion excise cut will reduce fuel costs by about 26.3 cents per litre, saving motorists roughly $19 per 65-litre tank as part of a three-month relief plan.
- On Wednesday, the federal government will halve the fuel excise for three months, a $2.5 billion emergency measure aimed at easing cost-of-living pressures from the escalating Middle East conflict.
- Energy Minister Chris Bowen attributed fuel supply disruptions to panic buying, saying demand increased by 100 per cent following escalating tensions in the Middle East.
- The excise reduction of 26.3 cents per litre will save motorists about $19 per 65-litre tank, though Treasurer Jim Chalmers warned full benefits will take one to two weeks to materialize.
- While Liberal leader Angus Taylor labeled the plan "overdue," economists warned the stimulus could drive up inflation, potentially forcing the Reserve Bank to consider further interest rate hikes.
- States and territories agreed to return GST revenue earned from higher fuel prices to the federal government, while the ACCC will monitor retailers to ensure savings reach consumers.
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Coverage Details
Total News Sources15
Leaning Left2Leaning Right4Center1Last UpdatedBias Distribution57% Right
Bias Distribution
- 57% of the sources lean Right
57% Right
L 29%
14%
R 57%
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