Richard Marles rules out fuel excise cut, says ‘light at end of tunnel’ as rate hike looms
With petrol prices surging and another interest rate hike looming, Richard Marles has delivered a message of hope, but ruled out one key form of relief.
Richard Marles has ruled out a further cut to the fuel excise as the war on Iran drives global inflation and skyrocketing costs – but has insisted there is a “light at the end of the tunnel”.
The Deputy Prime Minister told News24 on Sunday the government was “not considering” another cut to the fuel excise.
“What we are focused on is other cost of living measures and managing the budget in the most prudent way possible, which gives us space to look at cost of living as we move forward,” he said.
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By continuing you agree to our Terms and Privacy Policy.The Albanese government in April slashed the import tax, bringing fuel prices down by as much as 32c per litre.
The cut was halved again in June, before coming off altogether in August.
However, fuel prices have again shot up in recent weeks off the back of the ongoing conflict, with the NRMA reporting the average price for regular unleaded in Sydney now sitting at a whopping 237.8c per litre.
Prices were expected to rise further still to the low to mid 240c per litre over the coming week, according to the NRMA.
While a lasting peace in the Middle East remained elusive, Mr Marles said there would be “light at the end of the tunnel”.
“We’ve been working with Australians in relation to cost of living,” he said.
“We continue to do that and in what is a difficult international environment which is being experienced around the world.
“ … there will be a light at the end of the tunnel. But, right now, what we’re facing is an internationally inflationary environment, essentially stemming out of the conflict.”
Mr Marles’ remarks come days before the Reserve Bank is expected to hike the cash rate earlier than planned.
Asked about the potential rise, Mr Marles said there had been “really, really significant pressure globally” from the conflict and that was now playing out “in terms of global inflation”.
“Most advanced economies have experienced a rate rise in the last month,” he said.
“We, as a result, continue to be very focused on cost of living here.”
The Albanese government has refused to be drawn on further excise cuts, and instead focused on other cost of living measures.
The Coalition this week announced it would introduce a price “shield”, an automatic cut which would come into effect when the two-week average for Brent crude exceeded USD$100 per barrel.
The threshold has been passed only twice in recent years, including at the outset of the full-scale invasion of Ukraine and the start of the war on Iran.
Liberal frontbencher James Paterson told News24 on Sunday “Australians would welcome the kind of relief” provided by the shield.
“We think its proportionate and sustainable and targeted,” he said.
Senator Paterson noted Anthony Albanese’s criticism of former prime minister Scott Morrison over fuel costs.
“He thought it was outrageous and he thought that Scott Morrison was out of touch … what does $3 per litre for diesel say about this Prime Minister,” he said.
On the conflict, Mr Marles said he had spoken with the Secretary of War Pete Hegseth, but would not “speculate” on the United States’ plan for the conflict.
“Clearly, we spoke about this, but I’m not going to speculate on how the progress of the war continues,” he said.
“Ultimately, that is a matter for the United States and Iran, in that sense.”
Originally published as Deputy PM Richard Marles rules out fuel excise cut but assures ‘light at the end of the tunnel’
