Source : Perth Now news
Australians need to worry about ongoing shipping tolls through the Strait of Hormuz, the federal opposition says, as the government lowers but extends tax cuts on fuel.
Anthony Albanese confirmed overnight that the fuel excise cut would be carried into July, with petrol and and diesel prices to be 16 cents per litre cheaper compared to normal prices.
Speaking to the ABC on Sunday, opposition foreign affairs spokesman Ted O’Brien backed the government’s extension of the fuel excise cut.
“I think the main concern, from Australia’s point of view, should be the risk of an ongoing toll run by the Iranians … an ongoing toll for the Strait of Hormuz,” Mr O’Brien said.
“From Australia’s perspective, I think that’s the main thing that we should be concerned about because that has a direct impact on the prices we pay here in Australia.
“A permanent toll would be bad in practice, wrong in principle, and set a dangerous precedent for how other waterways should be managed internationally.”
This week the US and Iran signed a memorandum of understanding – which brings with it a ceasefire – to enter 60 days of negotiations.
As global oil prices subside, Australia’s petrol and diesel prices are officially lower now than before the war began.
But Donald Trump has indicated the Iranian regime may be angling to charge ships a toll, posting online Saturday: “There will be NO TOLLS in the Hormuz Strait for 60 days during the Cease Fire Period, and there will be NO TOLLS after the 60 day period has expired, unless they are imposed by and for the United States of America.”
The memorandum of understanding reopened the Strait of Hormuz, but on Sunday morning Australian time Iran said it had closed the strait because of Israeli attacks on Lebanon.
However, the US military claimed 55 merchant ships carrying 17 million barrels of oil went through the waterway.
Technical-level negotiations between Iran and the US, mediated by Pakistan and Qatar, will begin in Switzerland on Sunday.
The shaky ceasefire prompted the Australian government to lower but extend cuts to fuel excises on Saturday.
The move is expected to save drivers $11 per tank, with the Heavy Vehicle Road User Charge to also be reduced by 16 cents.
Both cuts begin July 1, run until August 2, and are slated to cost the federal government $400m.
A senior LNP MP, Mr O’Brien supports Anthony Albanese’s extension to the tax cuts.
‘Credit to them, I think it’s a practical step,” Mr O’Brien said.
“It’s good insurance. It hasn’t been set for too much longer.
“I think the real test for them is whether or not they find budget offsets to pay for it … Otherwise, Australians are just going to get stung anyway by interest rates remaining higher for longer.”
