E-Paper
'Months ahead not easy': Australia cuts fuel excise, promotes public transport as US-Iran war triggers energy crisis
Australian PM Albanese said the country's National Cabinet had adopted the National Fuel Security Plan.
Australian Prime Minister Anthony Albanese on Wednesday addressed the country, announcing some restrictions and urging people to opt a few measures amid a global energy crisis fuelled by the conflict in West Asia.
As the conflict between US-Israel and Iran enters its second month, disruptions have continued for shipping through the Strait of Hormuz, which serves as a critical passage for global energy trade. Owing to this, energy prices have climbed up, supplies are facing disruption and production is limited.
In response to this, Australian PM Albanese said the country's National Cabinet had adopted the National Fuel Security Plan, which would help its citizens if supplies remain seriously disrupted over a long term.
Also Read | Government cuts excise duty on fuel, raises export costs amid West Asia crisis
“The months ahead may not be easy. I want to be upfront about that. No government can promise to eliminate the pressures that this war is causing. I can promise we will do everything we can to protect Australia from the worst of it,” the Australian PM said in a video message posted on X.
Albanese said that while these were “uncertain times”, the country would “deal with these global challenges the Australian way, working together and looking after each other.”
This came after Pakistan implemented fuel-saving measures, including reduction of workforce by half and moving to a four-day week. Sri Lanka too earlier moved to declare all Wednesdays off and tightened fuel rationing.
What restrictions has Australia announced?
Albanese said his administration had cut the fuel excise in half, saying this measure would be in place for the next three months.
“Today, we cut the fuel excise in half. Cutting the tax on every litre of petrol by 26 cents. Those savings have started showing up at your petrol station,” the Australian PM said, adding that the heavy vehicle road user charge for truckies had also been brought down to zero.
Also Read | Where does piped gas come from? Why PNG holds up while LPG struggles amid Iran war
“Both these measures will be in place for the next three months. We are working to bring the price of fuel down, to make more fuel here and to keep it on shore and get more fuel here,” Albanese said.
The Australian PM urged citizens not to “take more fuel than you need”, but asked them to go about their business and life as normal. He urged the citizens to switch to catching the train or bus or tram to work, adding that it would build the country's reserves and would save fuel for people who have no other choice but to drive.
“Farmers and miners and tradies who need diesel every single day. And all those shift workers and nurses who do so much for our country,” Albanese said.
