Treasurer Jim Chalmers Refuses to Confirm Fuel Excise Cut Ahead of National Cabinet Meeting
Treasurer Jim Chalmers has declined to confirm whether the government will implement a cut to the fuel excise as part of its response to Australia's escalating fuel crisis, with leaders scheduled for a national cabinet meeting within hours. Speaking on Sunrise on Monday, Chalmers made it clear that no options have been locked in, despite mounting pressure from households facing soaring prices at the bowser.
Government Focus on Supply and Cost-of-Living Relief
Chalmers emphasised that the government's efforts have been concentrated on supply, distribution, cracking down on rip-offs, and providing cost-of-living relief through other avenues. He stated, "We've been focused on supply, distribution, cracking down on rip-offs, providing cost-of-living relief in other ways. But always, governments like ours, we work through all of the scenarios, all of the contingencies. We keep that under, more or less, constant review, and we help where we responsibly can."
National Cabinet to Consider Range of Measures
The national cabinet will deliberate on a variety of measures aimed at conserving fuel and stabilising supply. These include increased work-from-home arrangements, limits on fuel purchases, and potential changes to fuel taxes. However, Chalmers signalled the government's reluctance to introduce drastic interventions such as rationing or widespread, COVID-style restrictions.
He explained, "Our objective here is to keep the country moving, to keep people moving, to keep farmers farming, the trucks on the road to make sure that we can try and avoid those heavier-handed, harsher measures." Chalmers highlighted that this effort hinges not only on supply but also on consumer behaviour.
Consumer Behaviour and Panic Buying Concerns
Despite weeks of warnings, some Australians continue to engage in panic buying, contributing to patchy shortages at service stations across the country. Chalmers defended Australians, noting that the "vast majority of people are doing the right thing." However, when pressed by Sunrise host Nat Barr on how stations are running dry if only a small number are over-purchasing, he acknowledged the complexity.
Chalmers responded, "Overwhelmingly, Australians understand this very serious economic event ... typically, in my experience, Australians will try and do the right thing, but that's not always universal." He attributed this behaviour to growing anxiety as the crisis deepens, with households already feeling significant strain.
Economic Shock and Household Pressure
Chalmers acknowledged the intense pressure households are under, describing the situation as a "very substantial economic shock" driven by the ongoing war in the Middle East. He said, "We understand that people are worried. People are paying a hefty price at the petrol bowser," while assuring Australians that fuel shipments are continuing to arrive regularly.
Coordinated Response and Future Measures
Chalmers stated that Monday's national cabinet meeting would focus on delivering a coordinated response, with states and territories managing the disruption in a "consistent way right around the Federation." He emphasised, "The better that we do now, the more likely we are to avoid some of the heavier-handed, harsher measures down the track."
The government remains committed to exploring all viable options to mitigate the fuel crisis, prioritising measures that maintain national mobility and economic stability without resorting to extreme interventions.
