Australia’s government recently announced it will slash petrol and diesel taxes by half amid a surge in fuel prices prompted by the US-Israel war on Iran.
Prime Minister Anthony Albanese made the announcement on Monday as the international benchmark for crude oil rose above $116 a barrel, its highest level in nearly two weeks, amid escalation on multiple fronts of the conflict.
Albanese said the move would reduce the cost of petrol by 26.3 Australian cents ($.18) per litre, saving motorists nearly $19 ($13) on a 65-litre (17-gallon) tank of fuel.
“We understand the cost pressures for people are very real as the impact of the war on the other side of the world plays out right here,” Albanese said.
“We’re acting now to be over-prepared.”
Albanese said the government would also suspend its charge on heavy vehicles for three months.
Average diesel and petrol prices in Australia’s five largest cities rose 10 percent and 8 percent, respectively, in the week to March 25, according to the country’s competition watchdog.
While Australia is a major exporter of coal and natural gas, the country sources about 80 percent of its refined fuel needs from overseas.
Peter Khoury, a spokesman for the National Roads and Motorists’ Association in Australia, said
“It’s not a tax that’s putting up the price; it’s oil prices,” Khoury told Al Jazeera.
He further added that the tax cut would make little difference as petrol prices had risen about 33 cents ($0.21) per litre in the past two weeks alone.
