‘Making a bad situation worse’: Petrol price pain next big political fight

Soaring petrol prices are set to become the next political battleground, as Opposition Leader Peter Dutton attacked the Albanese Government over something put in place by the former Coalition team he was part of.

Soaring petrol prices are set to become the next political battleground, as Opposition Leader Peter Dutton attacked the Albanese Government on not extending the fuel excise cut beyond September despite the Coalition previously saying it would be too expensive to do.

Petrol prices will rise by 22.1c a litre towards the end of next month when the temporary halving of the petrol excise ends after six months.

It comes as the petrol excise rose on Monday as part of its twice-yearly indexation to 23c a litre from 22.1c.

It is understood the Liberal and joint Coalition party rooms have not endorsed changing position on the petrol excise cut yet.

Brisbane petrol prices are about $1.70 a litre at the moment.

Opposition Leader Peter Dutton during Question Time in Parliament House in Canberra on Monday. Picture: NCA NewsWire / Gary Ramage

Mr Dutton said power prices were already rising and that “Labor was making a bad situation worse” by not extending the excise reduction.

“Will your government compound the pressure on household budgets by not extending the fuel excise relief,” Mr Dutton asked in Parliament.

Prime Minister Anthony Albanese said it was the Morrison Government which set the end date for the cost-of-living measure.

“I point to the fact that (Mr Dutton) was in the Cabinet that put together the budget, that had the end date for the measure he talks about,” Mr Albanese said.

Halving the petrol excise for six months cost the budget $3 billion.

Then-Prime Minister Scott Morrison had previously ruled out extending the excise cut beyond September saying “you don’t just spend money forever”.

Opposition treasury spokesman Angus Taylor said the decision on extending the petrol price excise was up to the government of the day and that Australians were hurting under cost of living pressures.

“The Treasurer failed to outline a plan to provide cost of living relief last week,” he said.

“The Prime Minister and the Labor Party are breaking their promises on cost of living and Australians are paying the price.”

Treasurer Jim Chalmers has also repeatedly ruled out extending the reduction, saying cost-of-living measures had to be weighed up responsibly when the budget was “a trillion dollars in debt”.

The excise is set to end at 11.59pm on September 28.