Australia's temporary fuel excise cut, which has lowered petrol prices, is expected to remain a short-term measure, according to federal Energy Minister Chris Bowen. The three-month reduction, implemented in April to counter soaring prices driven by the US-Israeli-led war on Iran, is set to expire at the end of June.
Government Stance on Extension
Prime Minister Anthony Albanese has neither confirmed nor ruled out extending the policy, which has cut petrol and diesel costs by 26.3 cents per litre. 'Mr Albanese has made clear that obviously we will continue to monitor the situation,' Mr Bowen told reporters on Saturday. 'But the excise was a temporary measure and we envisage it being a temporary measure.'
Budget Implications
The May 12 federal budget did not allocate funds to extend the excise cut, which has cost the budget $2.9 billion. However, it included $3.2 billion for a new government-controlled fuel reserve. In a regular update on Australia's fuel stocks, Mr Bowen confirmed that an additional 50 million litres of diesel had been secured as a buffer for Western Australia.
Jet Fuel and Global Concerns
An extra 50 million litres of jet fuel have also been added to national stocks amid 'concern internationally' about jet fuel levels, Mr Bowen said. This follows the government's Tuesday announcement that about 100 million litres of additional jet fuel shipments had been secured from China, with deliveries beginning in June.
Australia currently holds 43 days' supply of petrol, 31 days of jet fuel, and 38 days of diesel as part of its fuel reserves. The war in Iran has led to the closure of the Strait of Hormuz, through which one-fifth of the world's oil passes, causing volatility in global markets. Mr Bowen noted that while the Australian government seeks a resolution to the conflict, it is not a central player in the situation.
