Coalition Proposes Fuel Price Measure For Oil Price Shocks

Federal Member for Dawson Andrew Willcox MP says regional Australians feel fuel price spikes hardest, with long distances and limited public transport making affordable fuel essential for families, farmers and local businesses. Photo supplied

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A Coalition proposal would halve fuel excise when global oil prices rise above a set threshold, with the party estimating the measure could reduce fuel costs by 27 cents a litre.

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Federal Member for Dawson Andrew Willcox MP said the proposed Fuel Price Shield would be triggered when the two-week average closing price of Brent crude rises above US$100 a barrel.

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The Coalition estimates the measure would save motorists around $15 on a typical tank of fuel.

Mr Willcox said regional Australians could benefit from the proposal due to the distances often travelled between major centres.

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“Fuel is not optional in Dawson. We have hundreds of kilometres between major centres, limited public transport and families who need their cars to get to work, school, medical appointments, the shops and everything in between,” Mr Willcox said.

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“When fuel prices spike, regional Australians feel it first and feel it hardest. There is simply no easy alternative to driving when you live hundreds of kilometres from the next major centre.”

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He said higher fuel costs also affected agricultural producers and businesses reliant on transport.

“Our farmers feel that pressure right through the supply chain. They need diesel to plant, harvest, irrigate, transport and get Australian produce to market. When the cost of fuel goes up, the cost of getting that food from the paddock to the supermarket goes up with it.”

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Coalition Leader of the Opposition Angus Taylor said the proposal was intended to provide temporary relief when international oil prices rose sharply.

“Fuel is not a luxury. Australians need it to get to work, take the kids to school and keep their businesses running,” Mr Taylor said.

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“When global events send oil prices through the roof, Australians should know there is a clear automatic safeguard in place to provide temporary and targeted relief.”

“The Fuel Price Shield would provide certainty. When a serious oil shock hits, the tax comes down automatically. When oil prices return to more normal levels, the ordinary rate is restored.”

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Leader of the Nationals and Queensland Senator Matt Canavan said higher fuel prices could also affect the wider economy.

“Higher fuel prices also flow through the entire economy. They increase the cost of moving food, freight and supplies around our country.”

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“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.”

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Mr Willcox said the proposal would also help address costs associated with transporting goods.

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“This is about more than what people pay at the bowser. Fuel is an input into almost everything we buy in Dawson,” he said.

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“It moves our food, our freight, our building materials and our tourism products. When fuel spikes, those costs don't disappear. They are passed through the economy.”

The Coalition has included the Fuel Price Shield and stronger fuel security as part of its broader economic policy platform.

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Supplied by the office of Federal Member of Dawson Andrew Willcox

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