Government Defends Fuel Crisis Response Amid Pressure for Excise Cut
The federal government has strongly defended its handling of the ongoing fuel crisis, insisting that Australia is responding more effectively than most countries worldwide. Prime Minister Anthony Albanese is currently considering whether to slash the fuel excise, following calls from the Coalition to halve it for a three-month period. However, other ministers have expressed significant concerns about the potential inflationary impact of such a move, advocating instead for targeted cost-of-living support measures.
Practical Measures Already Underway
Social Services Minister Tanya Plibersek addressed the issue on Monday, emphasizing that the government is focused on practical measures already in motion as households grapple with soaring prices. "We understand that this is a really worrying time for people, that the prices are very high, that they’re really impacting the family budget," Plibersek stated. She outlined a series of steps already implemented, including:
- Releasing 20 per cent of the national fuel stockpile to increase supply.
- Prioritizing regional deliveries to ensure equitable distribution.
- Strengthening oversight of pricing to prevent exploitation.
Plibersek also highlighted new legislation announced by the prime minister to support fuel companies in purchasing fuel overseas on the global market, even when prices are exceptionally high. She stressed that the government would continue to escalate its response through the national cabinet meeting, ruling out no options. "We are prepared to take every sensible measure to support families," she affirmed.
Political Pressure and Global Context
This defence comes as political pressure intensifies on Prime Minister Albanese, with his satisfaction ratings declining amid the cost-of-living crunch. Plibersek rejected criticism of the government’s approach, arguing that Australia is outperforming other nations facing the same global shock. "I think both our actions and the way we’re explaining it to people are going really well at a time that is very, very difficult globally," she said. "There is nowhere in the world that’s not experiencing higher fuel prices. Our government is doing more to deal with those higher fuel prices than many governments around the world."
Opposition Criticism and Climate Policy Debate
Former Deputy Prime Minister Barnaby Joyce challenged this claim, attributing the worsening crisis to the government’s climate policy. "The climate change department really exacerbates the cost-of-living crisis," Joyce asserted. "If you want to know what the price of climate change is, you’re living it now." While acknowledging that his party would support a temporary excise cut, Joyce insisted it must come with offsets, such as addressing the road user charge for heavy industry and identifying corresponding savings.
Supply Stability and Legislative Actions
Despite the criticism, Joyce recognized the government’s efforts to secure additional fuel supplies, including from Singapore. The government has reassured Australians that fuel supply remains stable, with current reserves including 39 days of petrol, 30 days of diesel, and 30 days of jet fuel. Replacement shipments have already been secured for cancelled April deliveries. Plibersek confirmed that all boats scheduled for March arrived as planned, and the six cancelled in April have been "more than replaced." Additionally, she announced that legislation will be introduced this week to back fuel companies in purchasing extra fuel on the global market, ensuring continued supply stability.
