Australia cuts fuel sales tax by half for three months

Canberra (ANTARA) - Australian Prime Minister Anthony Albanese announced on Monday (30/3) that the government will halve the fuel sales tax as a response to prices reaching their highest record. Albanese told the media in Canberra after meeting with state and territory leaders on Monday morning local time that the fuel tax will be cut for three months starting Wednesday (1/4). This initiative will reduce the price of petrol and diesel by 26.3 cents per litre amid price increases triggered by the oil crisis due to the conflict in the Middle East. According to the latest data from the Australian Institute of Petroleum (AIP), the national average for regular unleaded fuel reached a record high of A$2.53 (A$1 = Rp11,683) or equivalent to US$1.73 (US$1 = Rp16,957) per litre in the week ending Sunday (29/3), up 6.3 per cent from A$2.38 in the previous week. The national average for diesel prices rose 9.7 per cent in the same period to A$3.1 per litre, according to AIP. “We understand that Australians are under serious pressure,” Albanese said on Monday. Albanese announced that the road user charge of 32.4 cents per litre for diesel used in heavy vehicles will be reduced to zero for three months to provide relief to the trucking industry. Australian Treasurer Jim Chalmers said both measures will cause the government to lose around A$2.55 billion in revenue. From an economic perspective, the end of the conflict in the Middle East is greatly anticipated, and in the meantime, the government is ramping up various efforts to provide assistance wherever we can do so responsibly, he said. In addition to relief measures to ease the cost-of-living burden, Albanese revealed on Monday that state and territory leaders have agreed to a national plan outlining how governments will collaborate on fuel resilience.