“While any form of tax relief is welcome, cuts to fuel excise will be negated within days due to Australia’s lack of energy production and dependence on foreign oil,” said Daniel Wild, Director of Research at the Institute of Public Affairs.
The Australian Competition and Consumer Commission’s latest petrol monitoring report has cited Russia’s invasion of Ukraine, OPEC’s refusal to boost crude oil production and surging demand as the reasons why the nation’s fuel prices have rocketed to an eight year high in real terms.
“Each time Australians fill up at the bowser they are paying for the policy failure of relying on foreign oil as our leaders have priced Australia out of fuel production thanks to net zero and red tape,” said Mr Wild.
“The Morrison Government’s net zero commitment and the red tape burden faced by proponents of vital energy generating projects are leaving Australia exposed and vulnerable.”
“By surrendering to the concerns of the inner-city elite and cancelling petroleum exploration permits, such as PEP-11, the Prime Minister has only exacerbated the problem we now face.”
“Red tape has strangled our ability to produce our own fuel. At the turn of the century Australia had eight operational oil refineries, enough to almost meet our domestic consumption of fuel, however only two remain today.”
“Worst still, on Scott Morrison’s watch, both BP and ExxonMobil announced they would be closing their respective refineries in Kwinana, Western Australia, and Altona, Victoria.”
Cutting red tape is now mission critical to Australia being able to produce vital supplies and the energy we need in an Asia Pacific region that is growing more hostile.
“Australia is driving head on into the same dangerous energy shortage scenario Europe has discovered following Russia’s invasion of Ukraine.”
As UK and European leaders now scramble to secure their energy supplies, Australia needs to unlock its own abundant energy resources.
“As a nation, we are blessed with over 2000 years’ of coal, close to one-third of known global uranium deposits, and an abundance of gas and crude oil. But we have become laggards in the development of our energy resources and maintain little more than 1.5 days of oil reserves to fuel domestic consumption should the worst happen.”
“As fuel prices race towards $2.50 a litre and beyond, our political leaders need to put Australia first by abandoning net zero and slashing red tape,” said Mr Wild.