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The Guardian - AU
The Guardian - AU
National
Luca Ittimani

‘Political Band-Aid’: cutting Australia’s fuel excise could make petrol shortages worse, economists say

A petrol station sign shows diesel selling at 309.9c a litre in Sydney
A Sydney petrol station sells diesel at 309.9c a litre. Economists warn it would be a ‘very bad idea’ for the government to cave to growing pressure to cut fuel tax. Photograph: Dean Lewins/AAP

Fuel excise cuts would be a “political Band-Aid” that could worsen petrol shortages and add to inflation, economists have warned.

The mining billionaire Gina Rinehart, Tasmania’s state premier and Liberal opposition leaders in New South Wales and Victoria have called for the Albanese government to cut the excise on petrol and diesel.

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