In brief
- Measures implemented by the Australian government to tamp down petrol prices are set to expire at the end of June.
- The government has made no indication that it intends to extend the measures.
Motorists and transport companies are being alerted to the impending conclusion of the reduced fuel excise, as tensions between Iran and the United States intensify.
The Albanese government initially halved the fuel excise, cutting 26 cents per liter, in reaction to skyrocketing global oil prices triggered by the ongoing conflict in the Middle East.
This $2.5 billion initiative is scheduled to end in June, with Transport Minister Catherine King suggesting that it will not be prolonged.
“We are in discussions with the industry regarding the effects, but for now, people should expect the excise to conclude at the end of June,” she mentioned during an interview on ABC News Breakfast on Wednesday.
“Our efforts are focused on shielding Australians from the repercussions of this Middle Eastern conflict,” she added.
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King said the government’s most senior ministers, including Prime Minister Anthony Albanese, have all been working “incredibly hard” to secure Australia’s fuel supply by shoring up key international relationships with partner nations.
The US military has started launching “self-defence” strikes against Iran in response to the downing of an American Apache helicopter.
US President Donald Trump earlier said his nation “must respond” to the attack.
Iranian state media confirmed explosions were reported in Sirik, a port city along the Strait of Hormuz.
King said Australia urged diplomatic solutions to end the conflict in the crucial oil passageway.
“We want to urge all parties to continue to negotiate that,” she said.
“This is a pretty fragile ceasefire, and you’re seeing that borne out unfortunately.”
Labor has since introduced a $10 billion energy and fertiliser security package to secure the nation’s supply chains.
Australia’s onshore fuel reserves will be expanded to at least 50 days and a permanent, government-owned fuel reserve of about a billion litres will be established.
The minimum stock-holding obligation for suppliers will also be increased by about 10 days for every type of fuel.
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