Federal Budget 2022: Prime Minister Scott Morrison gives hint about petrol relief

Prime Minister Scott Morrison has given a huge hint about what kind of relief for skyrocketing petrol prices will be handed out in the federal budget.

Prime Minister Scott Morrison has given a massive hint relief for skyrocketing petrol prices of more than $2.20 a litre is on the way.

Asked about the upcoming federal budget on Tuesday while spruiking tourism funding in Cairns, Mr Morrison said he was “very conscious” of the cost of living pressures being faced by Aussies.

Soaring grocery prices have been blamed on mass chain supply issues which have sparked a warning prices at supermarkets will continue to skyrocket.

Increased petrol prices – which have been triggered by the war in Ukraine – are also heavily impacting the cost of products that need to be transported interstate and hitting motorists at the bowser hard.

“We are extremely conscious of the impact, particularly of the rise in fuel prices on the cost of living, and the cost of doing business,” the Prime Minister said.

“Because fuel prices flow right through.

“The terrible things we’re seeing in Ukraine … these terrible events are having a big impact on the global economy and particularly on the price of oil by the barrel, and that is pushing the costs up.

Prime Minister Scott Morrison was quizzed again about cost of living. Picture: NCA NewsWire / Flavio Brancaleone

“Australians understand that.

“And so the Treasurer and I have been working carefully to ensure that we get our response right in addressing the cost of living pressures that Australians are facing right across the spectrum.”

Treasurer Josh Frydenberg has previously flagged that he is considering a temporary cut to the 44-cent fuel excise.

In an exclusive interview with news.com.au, he made it clear it was an option being considered, but ruled out a freeze to the automatic indexation of the fuel excise that comes into force in August.

Cost-of-living issues have also been escalated by catastrophic floods across NSW and Queensland, which destroyed major crops in both states.

Ritchies IGA chief executive Fred Harrison said a lack of produce being available for supermarkets to buy had forced an increase in fruit and vegetable prices.

“Basically there’s a shortage, the floods have taken out plenty of the crops,” he told 3AW.

“It’s really the fruit and vegetables which are in a bit of bother and it could be like that for the next three or four months.”

Lettuce, red capsicums and broccoli are among the produce most impacted.

Among the most affected products are broccoli, which has surged to $7.50/kilo while lettuces are five dollars for a head and red capsicums are at $15/kilo.

Mr Harrison advised customers the price of frozen vegetables will be more likely to remain stable, for those interested in keeping costs down.

“Right here, right now, if you can buy frozen it is going to be better value than fresh, but it is going to go up in the next three months,” he said.

Pet food and soft drinks are also affected, with prices expected to continue to rise for the next several months.

A Woolworths spokesman said the supermarket chain was forced to increase some prices, including Coke, Fanta and red meat, due to a spike in costs by its wholesalers.

“We’ve adjusted some of our retail prices following wholesale cost increases from our suppliers,” he said.

“We’ll continue to work with our suppliers to sensitively manage the whole-of-market inflationary pressure on food and groceries.”