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Fuel price cuts to help cost pressures for businesses

CCIWA has welcomed Federal Government moves to ease cost pressures on Australian businesses and consumers.

Person holding a fuel pump nozzle at a petrol station, representing fuel supply, pricing pressures and impacts on business operating costs. Prime Minister Anthony Albanese announced today the fuel excise would be halved for three months from April 1, along with Heavy Vehicle Road User Charge reductions.

“We urge all levels of government to look at what they can do to reduce fees, charges and taxes on businesses to allow them to continue to operate,” CCIWA CEO Will Golsby said.

Golsby said fuel supply and distribution remained key priorities for businesses and the community, particularly in regional WA.

“It’s vital that businesses across all sectors of the economy can operate throughout this crisis,” he said.

BRIEFING NOTE: How the Middle East crisis is impacting WA businesses

Road user charge cuts welcomed

The Government has also removed the Heavy Vehicle Road User Charge for three months and deferred the next scheduled increase by six months.

“The freight and logistics sectors have been among the hardest hit by this crisis, so the reduction in the road user charge will bring welcome relief to an industry that is vital to Western Australia,” Golsby said.

“WA’s size and remoteness make our State heavily reliant on road transport, so protecting those supply chains and critical industries should continue to be a key priority.”

Business chambers reveal Four-Point Plan

These announcements come amid the national and state business chambers releasing a united Four-Point Plan, urging federal and state governments to ramp up efforts to address the fuel supply crisis and mitigate worsening conditions.

The plan involves:

  • Secure supply – Top priority must be securing extra supply so there is fuel to distribute. This means working with allies to secure an outcome in the Middle East that enables oil shipping to resume, along with increasing efforts to secure fuel from alternative markets.
  • Ensure distribution – Government must work with oil companies, distributors and service station owners to ensure that gaps in distribution are plugged as efficiently and effectively as possible.
  • Manage demand – As supply expectations reduce, the government may need to look at a range of measures to reduce fuel demand. If required, these should begin with voluntary measures and could progress, if necessary, to more serious interventions to conserve fuel. It’s noted many businesses are already taking voluntary steps to reduce fuel use and are working with their employees to manage travel as appropriate.
  • Ensure business continuity – Where required, federal and state government support should be timely, temporary and targeted. If conditions deteriorate, business support to be considered could include cash flow support, measures to retain employees and ensure finance availability, and emergency assistance where appropriate.

 

CCIWA is monitoring the fuel situation and business impacts closely.

Become a CCIWA Member to ensure your voice is heard and you receive the latest updates. Contact us via [email protected] or on 1300 422 492.

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