The Nationals will introduce the Fuel Price Shield; an automatic safeguard designed to reduce the impact of major global oil price shocks on Australian families and businesses, meaning they will pay less at the pump.
Under the Fuel Price Shield, fuel excise would automatically be halved when the two-week average closing price of Brent crude is above US$100 a barrel.
When triggered, the measure is estimated to reduce the tax on fuel by around 27 cents a litre, equivalent to around $15 on a typical tank of fuel.
In addition, the 32-cent-a-litre heavy vehicle road user charge would be set to zero, giving truckies significant direct relief and households and businesses additional indirect relief by lowering prices.
Nationals Leader Matt Canavan said fuel prices have an especially large impact outside the major capital cities.
“In regional Australia you cannot just decide to stop driving. People often travel long distances for work, school, medical appointments and the weekly shop.
“Higher fuel prices also flow through the entire economy. They increase the cost of moving food, freight and supplies around our country.
“The Fuel Price Shield is designed to provide temporary relief when international oil markets experience an exceptional shock, while ensuring the ordinary arrangements return once that shock has passed.”
Shadow Minister for Infrastructure and Transport Bridget McKenzie said the Fuel Price Shield would provide vital protection for truckies, freight operators, and regional communities.
“Truckies cannot simply stop driving when oil prices spike. Fuel is one of their biggest costs, and when that cost goes through the roof it flows straight through the supply chain to every supermarket shelf and every small business,” Senator McKenzie said.
“The Fuel Price Shield will protect our transport industry from sudden global oil shocks, with corresponding relief for the road user charge so heavy vehicle operators are not left behind. That means lower pressure on freight costs and lower pressure on prices for Australian families.”
