Australia announces it will slash petrol and diesel taxes by half as fuel crisis bites
Australia has announced it will slash tax on petrol and diesel for three months due to the oil crisis prompted by the war in Iran.
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Australia’s PM Anthony Albanese made the announcement today - as oil prices surged about $116 a barrel.
Australia will cut fuel tax in half from April 1 to June 30 due to the soaring costs caused by rising energy prices.
It is expected that the move will reduce the price of petrol by 18 cents a litre or around $19 for a tank of fuel.
Mr Albanese said: “We understand the cost pressures for people are very real as the impact of the war on the other side of the world plays out right here.
“We’re acting now to be over-prepared.”
Oil prices rose to over $115 this morning, a 2.9% increase.
Last week the price per barrel peaked at $118. On Friday afternoon it was sitting just below $112.
US President Donald Trump said in an interview with the Financial Times on Sunday that he wants to "take the oil in Iran" and could possibly try to seize its major fuel hub of Kharg Island.
Global energy markets have been left hugely volatile after Tehran effectively blockaded the Strait of Hormuz by threatening to attack any ships that try to cross through.