Angus Taylor brands government ‘out of touch’ as Coalition pushes fuel excise plan to slash prices

Relief has been dangled in front of Australians struggling with soaring petrol prices, with a Coalition plan to halve the fuel excise if international oil prices remain high for more than two weeks.

The government has previously used temporary fuel excise cuts to ease cost-of-living pressures but has ruled out making them a permanent measure and is not currently considering another cut.

The stance has prompted Opposition Leader Angus Taylor to accuse the government of being “out of touch” as motorists again face rising costs at the bowser.

Nationals Senate Leader Bridget McKenzie told Sunrise the plan would automatically halve the fuel excise on petrol and diesel when the international oil price remains above $US100 a barrel for more than two weeks.

“Millions of Australians are doing it tough at the bowser right now,” McKenzie said.

“They can’t stop filling up the tank. They’ve got to get kids to school, drive to work and for our trucking industry this is an essential cost.

“They can’t just park the truck and stop delivering goods just every time there’s an international price hike.”

The Coalition says the measure would cost about $950 million a month and would be funded through changes to tobacco excise.

Community Strong MP Allegra Spender said broad fuel excise cuts risked adding to inflation and argued support should instead be targeted at households and industries most affected.

“I know people are really struggling, it’s super clear, but we’ve already spent around $3.5 billion on fuel excise cuts and they’re all ... just temporary,” Spender said.

McKenzie rejected the concerns, arguing it would be paid for through savings.

“It only becomes inflationary if you’re not actually paying for the fuel excise cut in savings reductions,” she said.

“The Labor Party, when they reduced the fuel excise last time we saw an oil price shock like this, didn’t make the payment savings out of the budget — they just added it on top of the budget.”

The debate comes as Reserve Bank Governor Michele Bullock on Tuesday warned the RBA was monitoring risks including excess demand, elevated oil prices and inflation expectations ahead of its September 29 interest rate decision.