Member for Riverina Michael McCormack has approved of the Federal Government’s decision to halve the fuel excise but has asked why it took a month. Photo: Jarryd Rowley.
Member for Riverina Michael McCormack has welcomed the Federal Government’s decision to halve the country’s fuel excise, but has questioned its timeliness.
Since the beginning of the conflict in the Middle East, petrol prices in the Riverina have jumped by 80 cents a litre, with diesel rising by more than a dollar a litre in most parts of the region.
According to Petrol Spy, some towns, including Lockhart, are recording prices of up to $3.65 a litre.
The move has led to the Federal Government announcing it will halve the national fuel excise for the next three months to help combat the rising prices.
Mr McCormack said he agreed with the government’s decision, but questioned why it had taken a month.
“[This is] good news, but why did it have to be dragged kicking and screaming?” he said.
“Every day the decision was delayed cost taxpayers around $16 million in costs at the bowser. But now the crisis turns to ensuring the nation, and particularly the regions, has enough fuel supply.
“I asked the Treasurer last week, why won’t he provide some relief for the bowser by cutting the fuel excise and increasing the fuel tax credit?
“There are actions that can be done, that should be done, that must be done.”
Mr McCormack said the current fuel prices and disruptions were affecting regional areas the most, and that by delaying the decision, it had cost residents millions of dollars.
“Labor were dragged kicking and screaming to the table and has finally decided to halve their fuel excise and to do something about the road user charges,” he said.
“So this is of some relief to those hardworking farmers, truckies and people who live in regional Australia, but have to say more needs to be done as far as supply, accessibility and availability.”
The new tax cuts will be in place until 30 June, with fuel prices expected to drop around 27 cents per litre on average.
Energy Minister Chris Bowen said it would take a few days for customers to feel the full effect of the tax cuts, as retailers first had to sell off the fuel they originally bought at the heightened prices.
“The fuel in the tank at the service station might have been there for days. They’ve already paid the tax,” Mr Bowen said.
“So please, if you turn up tomorrow and the price hasn’t gone down, they’re just waiting for the new petrol with the lower tax to come in.”
