Australian Prime Minster Anthony Albanese insists on reintroducing the full fuel excise duty in September, while admitting that there would be more inflationary pressures.
Citing budget pressures the Labor government rejected requests to increase the fuel excise taxes.
Previously, in order to combat rising fuel prices, the Coalition had halved fuel excise taxes for six months starting March.
As the tax cut is due to expire on Sep. 29, petrol prices are likely to soar at the end of the month.
The prime minister stated that it was “difficult to make a decision .”
“If the prices go up…of course it will have an effect, but this has been taken into account by economic analysis which has been performed,” he said to ABC Radio.
” We have one billion dollars in Liberal Party debt .”
Economists expect the Reserve Bank of Australia to raise the official cash rate at least 0.5% as fuel prices rise. This will increase household budget pressures.
Albanese expressed confidence in the RBA’s inflation management when he spoke about its upcoming decision.
” “I believe it’s appropriate for the government to allow the RBA do its job,” said he.
” There is, obviously, a review of the RBA. But… it’s not unusual. This has happened before .”
Australian Consumer Watchdog Asked to Ensure Fair Petrol Price Increases
Treasurer Jim Chalmers asked the Australian Competition and Consumer Commission to make sure that retailers don’t raise prices in the wake of full fuel excise being reinstated.
The treasure requested that the watchdog for consumers increase its surveillance of anti-competitive behavior of retailers, and to analyse daily fuel prices when excise taxes return to normal.
At a similar time, ACCC was asked by fuel companies to inform them not to give customers false reasons for price rises.
The team was also responsible for informing customers about the most convenient times to purchase petrol by using price-cycle and location data.
Chalmers stated that his letter to Gina Cass Gottlieb, chair of the ACCC, was meant to ensure Australian customers got fair prices at the pumps.
“Refiners should be aware of the potential for price increases from importers, wholesalers, and retailers. He said that the ACCC was keeping an eye on gasoline prices to ensure any rises are justified.
“There is no question that the ACCC can take legal action if fuel retailer conducts misleading or uncompetitive behavior .”
Alfred Bui, an Australian journalist based in Melbourne, focuses on business and local news. A former owner of a small business, he holds two master’s degrees. Contact him at [email protected]