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Australia reduces household costs by extending the fuel excise tax relief

Australia reduces household costs by extending the fuel excise tax relief
Australia reduces household costs by extending the fuel excise tax relief

Australia's Prime Minister Anthony Albanese announced on Sunday that the fuel excise will be extended for an additional month. The country is still battling with high fuel costs due to the war in Iran.

Albanese, in a statement, said that the government "would extend fuel excise relief to another month. This would make petrol and diesel 16c per litre less than normal prices for July. Australians will save around A$11 for each tank".

He said that the temporary assistance would help Australians cope with their cost of living and ease the pain caused by high petrol prices.

To help families cope with the higher fuel prices resulting from the Middle East war, the centre-left government has already reduced the excise tax on diesel and fuel for three months.

The announcement on Sunday followed a decision made last month to extend the measure that allows petrol and diesel to be released from domestic reserves until September. The measure was set to expire on July.

Australia, which imports the majority of its fuel, experienced localised shortages when the U.S. and Israel war against 'Iran broke out in February. Before the war, 20% of world oil was transported through the Strait of Hormuz.

Albanese made televised comments on Sunday. "We know?that families are under pressure and we know?that the impact?of this conflict?on the?otherside of the world?will have a... long economic tail," he said. (Reporting from Sam McKeith, Sydney; Editing done by David Gregorio).

(source: Reuters)