NewsBite

Fuel relief: ‘If New Zealand can do it, so can Australia’

With our neighbours across the Tasman taking drastic action to help struggling families overnight, there’s outrage as to why the Australian government is failing to follow suit.

'Any relief would be welcome': Fuel and beer cuts likely before election

With many Australians struggling to cope with skyrocketing petrol prices, the burning question is why isn’t the government taking action?

As the cost of a full tank reaches almost $200, Prime Minister Scott Morrison has refused to make a decision about the possibility of cutting the petrol excise which sees him gouging $30 every time Australians fill up.

Now, independent Senator Rex Patrick has called on Mr Morrison to look across the Tasman and take note of how the New Zealand government is acting to help its citizens, by cutting the fuel excise by $NZ0.25 a litre, equivalent to $A0.23 a litre.

The price cut came into effect at midnight last night and will apply for the next three months. In more good news, public transport fares have been halved amid what New Zealand Prime Minister Jacinda Ardern called a “global energy crisis” after Russia’s invasion of Ukraine.

“We are in a wicked perfect storm,” Ms Ardern told reporters at her post-Cabinet press conference, the NZ Herald reported.

Senator Patrick applauded the move, saying: “Jacinda Ardern gets it, but sadly our tone deaf Prime Minister doesn’t.

“Australian families and small businesses are suffering from high fuel prices now, yet Prime Minister Morrison thinks he should wait until budget day to announce any decision to help, and who knows when any action he might take will actually kick in.”

He said Australians simply can’t afford to wait for relief, calling on the fuel excise to be halved which would see it cut by 23 cents a litre.

“New Zealanders will experience the benefit of this price cut while Australians will be left waiting, all the while paying more at the bowser.

“If New Zealand can do this, so can Australia – and the need is greater here given the longer distances travelled by Australian motorists and the very clear inflationary pressures that are building in our economy.

Senator Rex Patrick has called for action on fuel prices. Picture: Matt Turner
Senator Rex Patrick has called for action on fuel prices. Picture: Matt Turner

“The Federal Government has the budgetary capacity to provide significant fuel price relief, given the fact that Treasurer Frydenberg’s Mid-Year Economic and Fiscal Outlook statement in December revealed a huge secret election war chest of $15.9 billion allocated to decisions ‘taken but not yet announced’.

“The current combination of extreme petrol prices and post-Covid-19 economic challenges is a special circumstance that demands immediate action from Prime Minister Morrison.

“He should take a leaf from Jacinda Ardern’s book and act now.”

High fuel prices are seen in Sydney's South Coogee as the impact of Russia’s invasion of Ukraine is felt across energy markets and the world economy. Picture: Nicholas Eagar/NCA NewsWire
High fuel prices are seen in Sydney's South Coogee as the impact of Russia’s invasion of Ukraine is felt across energy markets and the world economy. Picture: Nicholas Eagar/NCA NewsWire

However, Mr Morrison has warned that slashing the excise won’t halt the price rises. So far, he’s hinted that small changes may come in the March 29 budget, but ruled out anything major.

“I think Australians know that what’s happening with petrol prices at the moment is being caused by what’s happening with the war in Europe,” Mr Morrison told Channel 9.

“And so we’re working with other countries around the world at the moment in terms of releasing fuel reserves to try and alleviate the pressure on fuel prices.”

Asked if he would make any fuel tax changes in the March 29 budget, the Prime Minister refused to say.

“No, the answer is the Budget is at the end of this month. But my point is that excise, where it is at, is not going to change what the fluctuations are in price. I mean, we’ve seen it going from, you know, $1.70 to $2.20.”

Original URL: https://www.news.com.au/finance/economy/australian-economy/fuel-relief-if-new-zealand-can-do-it-so-can-australia/news-story/81a493316cc7905d97022262546103c3