Coalition proposes Fuel Price Shield to mitigate oil shocks

The Australian Coalition has proposed a ‘Fuel Price Shield’ to provide automatic relief to motorists and businesses during global oil price shocks. Under the plan, the fuel tax would be reduced by approximately 27 cents per litre—roughly half the current excise—whenever the two-week average price of Brent crude exceeds US$100 per barrel.

Opposition Leader Angus Taylor stated the measure is designed to provide certainty and remove the ‘day-to-day politics’ from fuel price decisions. The proposal also includes reducing the heavy vehicle road user charge from 32 cents per litre to zero when triggered. The Coalition estimates the relief would save a driver about $15 on a typical tank of fuel.

Nationals leader Matt Canavan emphasized that the policy would particularly benefit regional communities where driving is essential for work and services. Treasurer Jim Chalmers has dismissed the plan, as rising tensions in the Middle East continue to drive up international fuel costs.