Anthony Albanese has not ruled out extending the fuel excise cut amid “volatile” global economic conditions but has flagged a decision will be made closer to the end of June.
The Prime Minister, doing breakfast radio rounds on Thursday, described the three month tax cut as “very costly” but conceded it had “made a difference” to motorists and truckies.
He told Sydney’s 2Day FM: “We’ll make the assessment. It’s really volatile times. We don’t know when this war in the Middle East will end.”
The Albanese government temporarily halved the fuel excise from April 1 to June 30, reducing the cost of fuel by 26.3 cents per litre.
It has cost the federal budget $2.9bn.
The move aimed to provide relief from the impact of global energy shocks triggered by Tehran’s effective closure of the Strait of Hormuz after the US and Israel attacked Iran on February 28.
The US has since imposed a counter-blockade of Iran’s coastline, including its ports, as part of military efforts to get ships through the waterway.
As a result, crude oil prices have since remained volatile, hovering above the crucial economic threshold of US$100 per barrel.
A ceasefire between the US and Iran has taken effect since April 8.
US President Donald Trump announced this week his administration was in the final stages of negotiations with Iran.
But he also warned Iran of intensified US attacks unless a deal was struck.
Iran has further tightened its grip on the Strait of Hormuz and announced overnight its Persian Gulf Strait Authority had set up a controlled maritime “supervision area” in the vital waterways.
Ships transiting through the zone stretching from Kuh-e Mubarak in Iran to the south of Fujairah in the UAE will be required to obtain transit permits.
Australia has taken part in international diplomatic efforts to protect shipping in the Strait of Hormuz.
Defence Minister Richard Marles said last week Australia would deploy its E-7A Wedgetail aircraft as part of a global peacekeeping effort led by the US and France.
The RAAF surveillance aircraft was sent to the Middle East in March on request of the United Arab Emirates.
Mr Albanese said at the time it was to provide “defensive support” to Gulf nations from retaliatory attacks launched by Tehran after the US and Israel’s February attack.