What you need to know By Broede Carmody
Good afternoon, and thanks for reading our live coverage following a national cabinet meeting to discuss the fuel crisis.
We’ll leave you with the national average fuel prices over the past week, reported today by peak industry body the Australian Institute of Petroleum. They make for tough reading.
Regular unleaded petrol hit $2.53 per litre, up 40 per cent compared to prices before the war began on February 28. Diesel reached $3.10, up 72 per cent.
Here’s what you need to know from this morning’s meeting of national cabinet:
Prime Minister Anthony Albanese has announced he will halve the fuel excise for three months, reducing the price of petrol by 26¢ a litre. The Coalition has claimed a policy win, given it called for this measure on Friday morning. The federal government will also axe the heavy vehicle road user charge (also for three months). Both measures will cost the budget bottom line approximately $3 billion in lost revenue. The PM has also announced a four-stage National Fuel Security Plan. Australia is currently at level two, which means there are localised fuel supply disruptions and the government is taking precautionary measures to shore up supply (like underwriting the purchase of imports). Stage three, which Albanese says Australia is “substantially away from”, would involve the states reducing Australians’ fuel consumption through voluntary measures like working from home while more oil reserves are released. Stage four would involve much stricter rules to protect critical services and keep the economy running during sustained fuel shortages. Latest Posts yesterday 3.24pm Big four bank predicts three more interest rate rises by August By
Look away if you have a mortgage.
Westpac’s chief economist Luci Ellis, a former assistant governor at the Reserve Bank, reckons interest rates are going to get even higher.
Ellis said she expects the RBA to follow up its February and March rate hikes with increases at its May, June and August meetings.
That would push official interest rates to 4.85 pe
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