Frydenberg flags plan to cut petrol costs

Josh Frydenberg

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• By Avi Yemini

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Federal Treasurer Josh Frydenberg is reportedly considering a huge move that could see petrol prices slashed ahead of the election, as fuel costs head past $2 a litre.

The Federal Government is considering a temporary cut to the 44-cent fuel excise in a welcome move that could deliver immediate relief, but has ruled out a freeze on automatic indexation.

The fuel excise that comes into force in August, with the government arguing that automatic indexation would not deliver substantial cost of living relief for families.

”The main thing I would say is what we will do will be temporary and it will be targeted and that’s all I can say,’’ Mr Frydenberg told news.com.au in an interview.

News.com.au reported that any changes would cost the budget hundreds of millions of dollars but the cost could be made “temporary” and “targeted” to address cost of living pressure now by limiting the cut to specified time frame.

'For example, if the Morrison Government was to cut the 44 cents a litre tax by 10 cents on budget night, such a cut would deliver a $6 saving to motorists at the bowser when they fill up a tank. The cost of a temporary reduction in fuel excise of 10 cents a litre for six months would cost the government $1.5 billion.'