Coalition vows to cut $15 off tank of petrol when global prices spike

The opposition is promising to cut the cost of fuel when the global price spikes, saying the measure would slash about $15 off an average tank of petrol.Under the policy announced today, the Coalition said it would halve the fuel excise when the global price of Brent crude oil reaches an average of $US100 a barrel over a two-week period.Opposition Leader Angus Taylor said the initiative, called Fuel Price Shield, would be "fully funded" through the Coalition's policy of cutting back the tobacco excise."Fuel Price Shield is all about providing relief at the bowser when it really counts," Mr Taylor said in Canberra."When we see two weeks where the price has averaged over $[US]100 a barrel, which means we're getting up towards $3 a litre at the bowser, there will be relief for Australians under a Coalition government."Those prices, he said, are similar to what motorists are seeing at the pump now, with the re-escalation of war in the Middle East pushing up the price of petrol."We want to see $15 off a tank of petrol, 27 cents a litre, and that's fully funded through our cut to the tobacco excise," Mr Taylor said.The Coalition's policy to cut the tobacco excise by 80 per cent would raise $8 billion, according to modelling from the Parliamentary Budget Office.Mr Taylor said the Coalition would also eliminate the 32-cent road user charge for heavy vehicles to take pressure off the cost of transporting goods.Treasurer Jim Chalmers dismissed the opposition's fuel policy, saying it was "uncapped and unfunded".He told News24's Sunday Agenda the policy had more to do with "polling numbers than petrol prices", suggesting the Coalition was under pressure from One Nation.Economist Chris Richardson said most economists have consistently said cutting the fuel tax is a "bad bandaid" that worsens inflation. "That's the thing about a fuel tax cut, it simply adds to the amount of money sloshing around Australia," he said. "It may reduce your browser bill, but that comes at the cost of higher prices for everything else."It's a dumb policy at the best of times, and particularly dumb right now."He said both sides have either enacted or proposed fuel tax cuts in recent years, and both "have slagged off the other side for doing it". Government not considering future fuel excise cutsThe government implemented a cut to the fuel excise, the amount of tax the government collects on patrol, from April 1 until the end of July this year.That saw the fuel excise cut from 52.6 cents a litre to 20.6 cents a litre, a discount of 32 cents.The measure was extended until midnight on August 2, but a rate rise in the excise rate meant the discount was 16 cents a litre.Mr Chalmers was asked if the government would ever consider another fuel excise cut."It's not something that we've been discussing or considering, but we've shown a willingness over time to respond to the economic conditions," he said.Jim Chalmers dismissed the Coalition's fuel excise cuts policy. (ABC News: Callum Flinn)Mr Taylor said it was "incredibly disappointing" to see the treasurer rule out the measure.The opposition leader said Australians were facing potential further interest rate rises and cost-of-living pressures. The government has previously criticised Coalition's planned cuts to the tobacco tax, which would see a 20-pack of cigarettes drop from between $40–$50 to about $16–$26.Social Services Minister Tanya Plibersek said that policy was "a guarantee we will see smoking and vaping rates in this country increase" and "will lead to deaths".