Federal government offers potential relief to rising fuel prices

Treasurer Josh Frydenberg has hinted at a cut to rising fuel prices as part of a cost-of-living package for the upcoming federal budget on Tuesday, March 28.

The measures are aimed at providing relief to everyday Australians who are combatting the pressure from the rising cost of living. 

Speaking with the ABC, Frydenberg said oil prices were a large focus of this year’s budget considering it’s one of the biggest contributors to the cost of living.

“Fuel prices have skyrocketed, and of course, for many families, this (driving) is not a choice,” Frydenberg said.

“They need their car to get to and from work. They get into their car to drop their kids at school.

“These are costs that families are incurring and of course, it’s putting real pressure on their household budget.”

The temporary cut to the 44-cent fuel excise is expected to last anywhere up to 6 months and will provide immediate relief for motorists as the election looms.

For example, a cut of 10 cents to the current fuel excise will see a saving of $6 at the pump as reported by 7 News.

“We do think inflation will even go higher than it is today and we’ll make some upgrades in our budget numbers on Tuesday night,” Frydenberg told the ABC.

“But as I say, international factors are driving the higher inflation rates. That’s the higher fuel costs, obviously exacerbated by the situation in Ukraine, that’s the higher food costs — and particularly wheat — that we’re seeing as a result of developments in Europe.”

Opposition leader, Anthony Albanese said in recent a statement to reporters in Brisbane that the cost of living would be the main topic in this year’s budget, but the Morrison government actions might be too little too late.

“Cost of living pressures won’t be dealt with by this government, because this government declared … reduced or low wages, stopping downward pressure on wages, was a key part of the economic architecture,” he said.

“There’s a range of measures that could be looked at in terms of cost of living, we’ll wait and see.”

Petrol prices in the last year have gone up more than 30% while pay has gone nowhere. Only Labor has a plan for wages growth. pic.twitter.com/KIrxMkCWmT

— Anthony Albanese (@AlboMP) March 24, 2022

Once announced, petrol stations will be expected to promptly pass the savings on to motorists.