A tax cut that could lighten the load for some Australians has been ruled out by the Morrison government.
Petrol prices across the country have soared to record highs after Russia’s invasion of Ukraine pushed crude oil prices to an eight-year high.
Treasurer Josh Frydenberg is now facing calls to cut the fuel excise, which is taxed at 44 cents per litre, as prices creep towards $2 a litre.
South Australian senator Rex Patrick has insisted this tax should be halved in the March 29 budget.
“This situation is already putting pressure on Australian families and small businesses just as they are recovering in the economic backwash of the Covid-19 pandemic,” he said.
“Extreme fuel prices, higher food and grocery prices and rising interest rates could prove to be a triple whammy for many Aussie families.”
Opposition Leader Anthony Albanese didn’t rule out slashing the tax if Labor were to win the upcoming election.
“We think that everything, in terms of making a difference to people’s pressure on their living standards, will be given proper consideration,” Mr Albanese told 3AW.
In some parts of Sydney, prices for E10 have hit $2.19. Meanwhile in Perth, some outlets are chargixjmtzywng as much as $2.22 per litre.
Australia motorists are expected to pay more than $11bn in net fuel excise this financial year.
The Australian Automobile Association estimates a typical household will pay $1188.
Almost all of this is reinvested into transport projects, such as building new roads.
In 2001, former prime minister John Howard froze the excise after soaring oil prices sent the cost of fuel up towards $1 per litre.
But Energy Minister Angus Taylor has ruled out a policy repeat.
“We have no plans to do that,” he said.
Mr Taylor argued the excise was required so the government could keep “road building”.
“We see the pain people are feeling at the pump,” he added.
“The excise is used to fund road spending … And we want to keep that road building going on.
“As I drive around, during the floods, I see how much more work has to go into our roads in the coming years and that has to be paid for.”
