Susie O’Brien: Cutting fuel tax in this year’s Budget would be a symbol that the government is looking after us

Petrol isn’t a luxury for most; it’s a necessity, and politicians forget this at their peril. So in this year’s budget ScoMo has a chance to prove he is looking after us.

In Tuesday night’s federal budget, Victorians will be looking for relief from soaring petrol prices.

A tank of petrol now costs up to $200, and there are predictions that diesel could reach $2.50 a litre within a week, so it’s time for the federal fuel excise to be cut in half.

Forty-four cents from every litre of fuel goes into federal coffers, with about half of it spent on roads. Each year it generates around $11bn in revenue.

This is money car owners have every right to demand back at a time like this.

While a political shift towards sustainable energy is timely, politicians shouldn’t forget that most people still drive gas-guzzling cars.

There’s nothing wrong with that.

The Morrison government has already signalled that it will cut the fuel tax by 10 to 20 cents a litre for six months.

Given the cost of petrol – which has doubled in a few months – it should be at least 20c rather than 10c.

Reducing the fuel tax from 44 to 34c will only provide $6 relief on a normal tank, which isn’t enough.

Prime Minister Scott Morrison has signalled that it will cut the fuel tax by 10 to 20 cents a litre for six months. Picture: Andrew Henshaw

But why stop there?

New Zealand Prime Minister Jacinda Ardern has just cut 25c a litre off its fuel excise for three months, so why not 25?

The government not only needs to ensure we pay less for fuel, but put in place a regulatory mechanism to ensure the full discount is passed onto motorists.

These days, our city has been given over to pedestrians and bike lanes and state governments are more focused on alternative transport options.

And yet most workers in Victoria in the outer suburbs have no option but to drive an hour or more each way to work, with bike riding restricted to inner-city areas.

Efficient public transport is still a luxury enjoyed more by the middle-class in our city who tend to live and work close to the city in areas well serviced by trams, buses and trains.

I noted the vehement opposition of the residents in Josh Frydenberg’s seat of Kooyong to the idea of commuter carparks in their area.

“Say No to Park and Ride Hub for Outer Metro Commuters,” one of the large signs read.

These large snobby signs were dotted along roads like Liddiard St, Hawthorn, where the average house price is $3.4m.

Frydenberg – in danger of losing his seat – scrapped the plan that would make it easier for those from outer suburbs park near major stations like Camberwell and Glenferrie.

Petrol isn’t a luxury for most; it’s a necessity, and politicians forget this at their peril.

Many Victorians have no option but to drive an hour or more each way to work.

Remember when former treasurer Joe Hockey said an increase in the fuel tax wouldn’t harm the poor because they “don’t have cars or actually don’t drive very far in most cases”?

He was wrong – people in the outer suburbs poorly serviced by infrastructure and public transport have no option but to drive everywhere they go.

Prime Minister Scott Morrison made the same mistake in a recent press conference, showing he didn’t know the price of a loaf of bread, litre of petrol or rapid antigen test. His wife Jenny knows, but she’s not the one running the country.

At least Morrison wasn’t as arrogant at the British PM Boris Johnson who replied that he didn’t know the cost of bread but “could tell you the price of a bottle of champagne”.

And of course, there was that classic election blooper from 1993 that lost the Liberal Opposition the election. John Hewson couldn’t explain whether a birthday cake would be subject to GST or not and he didn’t ever recover.

A cut in the excise by 20c or more is a symbol that the government is looking after us. When times are tough people want cash in their wallets, food on their table and petrol in their cars.

With the government struggling in the polls and Australians worrying about bread and butter issues, there isn’t time to worry about the big budget picture.

Most voters want to feel a bit more secure about their own financial position than worry about the gross debt that will hit $1.2 trillion by 2024-25.

That’s why the government is also handing out $250 to Liberal-leaning pensioners – but not all welfare recipients.

When Labor suggested such hand-outs to encourage people to get vaccinated, Morrison called them bribes. But when the Coalition does it, it becomes a “one-off cash boost”.

For better or worse, richer or poorer, most of us are happy to have a few dollars in our pockets and – like the government – will put off worrying about the bigger fiscal picture for another day.