Motorists could see a further 5.7 cent per litre cut at the bowser after Australia’s premiers and chief ministers agreed that extra GST revenue from higher fuel prices should be returned to consumers.
The proposed reduction would be on top of the 26.3 cent per litre saving already in effect after the federal government halved the fuel excise on April 1.
Together, the measures could deliver total relief of around 32 cents per litre.
Premier Jeremy Rockliff said the commitment came out of a meeting of state and territory leaders on Thursday.
“We have been clear – we want to deliver immediate and real relief to Tasmanians as quickly as we can,” he said.
The GST is calculated at 10% of the total price at the bowser, so as fuel prices rise, states and territories collect more revenue.
Leaders have now agreed they should not keep that windfall.
“This further cut … would potentially lower fuel prices by another 5.7 cents per litre,” Rockliff said.
“This would be on top of the 26.3 cent reduction that is currently in effect.”
National Cabinet first flagged the issue on Monday when it announced the excise cut as part of a $2.55 billion relief package.
Thursday’s meeting firmed up the commitment.
Rockliff pointed to free public transport and support for community food providers as part of Tasmania’s broader response to the situation.
“Tasmanian families, businesses, our farmers and truckies need support and this further cut will help,” he said.
The fuel crisis has been driven by conflict in the Middle East and the effective closure of the Strait of Hormuz, which carries roughly a fifth of the world’s oil and gas.
Rockliff said updates would follow as negotiations on the GST mechanism continue.
