The rising cost of fuel is leading to calls for the government to step in. Global oil prices have skyrocketed, just two weeks out from a pre-election budget. Prime Minister Scott Morrison says the situation in Ukraine is to blame.
"We are very aware of what is occurring with petrol prices, and Australians understand that this has been caused and the ACCC (Australian Competition and Consumer Commission) has confirmed this only in the last 24 hours. This has been caused by the disruption of the war in Europe and the invasion of Russia into Ukraine. Now Australians understand that, and we (the government) understand it and there's been, carefully, not only to our own members, of course, who are on the ground but directly to the community themselves. And these cost of living impacts are real."
The excise raises about $20-billion a year for road and transport infrastructure. The fuel excise is a flat tax levied by the Australian government on petrol and diesel bought at the bowser.
Prices are already more than $2.20 a litre and are expected to rise to as much as $2.50. But experts question how effective a cut to the excise's indexation would be.
Mr Richardson says there would be no benefit.
"Almost nothing. You know, a pause to indexation is going to save a cent every year out of something that's bouncing, you know, 10 and 20 cents in a week. That's all about the politicians showing that they feel people's pain - and there is genuine pain - but you cannot fix a pain caused by a war in Europe with a band-aid on a tax in Australia."
