‘Dirty bomb’: Sales grills Treasurer on federal budget

ABC host Leigh Sales has grilled the Treasurer about a so-called “dirty bomb” hidden in the federal budget.

CANBERRA, AUSTRALIA NewsWire Photos MARCH 29, 2022: Treasurer Josh Frydenberg delivered his 2022 Budget speech in the House of Representatives in Parliament House in Canberra. Picture: NCA NewsWire / Gary Ramage

Treasurer Josh Frydenberg has denied the Morrison government’s temporary fuel excise cut is a “dirty bomb” that would trip up a potential future Labor government.

The government will halve the fuel excise to 22.1 cents a litre for a period of six months, saving about $15 on the average price of a tank of petrol at a cost to the budget of about $3bn.

The war in Ukraine and subsequent supply chain disruption have sent oil prices soaring and pushed Australian petrol prices to historic highs.

The cut to the excise forms comes as part of 2022 federal budget, with the coalition is pinning its re-election hopes on a $8.6bn cash splash to address cost of living pressures for Australian families over the next six months.

Mr Frydenberg has insisted the measures are “temporary and targeted” rather than a shortsighted bid to woo voters before Australians are due to vote at the upcoming federal election by the end of May.

Mr Frydenberg said the fuel excise cut would take effect at midnight on Tuesday and was expected to flow through to customers over the next fortnight.

Interviewed on the ABC’s 7.30 program after his budget night speech at Parliament House, Mr Frydenberg denied the measure would was designed to catch out a Labor government.

Host Leigh Sales asked Mr Frydenberg if the Coalition would turn around and blame the Opposition for a sudden increase petrol prices in six months’ time should Anthony Albanese and his party win the next election.

“No, it responds to the here and now where you’ve seen petrol prices above $2 a litre,” Mr Frydenberg said.

“It’s been largely driven by the events overseas with a barrel of oil up by 5 per cent since the start of this year.”

Treasurer Josh Frydenberg has unveiled a big-spending budget that he hopes will see the Coalition returned to power. Picture: NCA NewsWire / Gary Ramage

Mr Frydenberg said Treasury was forecasting that the price of a barrel of oil would come down to about $100 in the September quarter, when the fuel excise will be returned to its usual rate.

“It’s on the September 28 that we pivot off that cut in the fuel excise back to where it normally was,” he said.

“And what I’ve made very clear in my budget speech tonight is that the cutting the fuel excise is not coming at the cost of investments in roads, we’re still committed $12bn a year to road funding.”

Mr Frydenberg said it was a “long bow” to suggest the Morrison government was distorting the market by making petrol cheaper and therefore deterring people from transitioning to electric vehicles.

“We know that people are voting with their feet, taking up electric vehicles, and we're investing in the charging facilities so that we can see more electric vehicles rolled out,” he said.

“But this is a cost of living pressure that is hitting hard on household budgets.”

Mr Frydenberg has promised that the competition watchdog will monitor retailers to make sure petrol savings are passed on to motorists.