Motorists to See Fuel Prices Drop Under Coalition Plan

Motorists could see significant savings at the pump if the Coalition wins the upcoming election, as Opposition Leader Peter Dutton has vowed to slash fuel costs. The opposition has pledged to cut the fuel excise by 25p per litre for a year—halving it from around 50p to 25p.

Dutton emphasised that this measure would take effect immediately upon taking office, unlike Labour’s planned tax cuts, which won’t come into force for more than a year. He argued that the Coalition’s plan provides faster and more meaningful relief compared to Labour’s proposal.

The $6 billion initiative will be a key highlight of the opposition leader’s Budget Reply speech, as both major parties vie to offer the most effective solution to rising living costs.

How Much Could You Save?

According to the Coalition’s estimates, someone filling up a 55-litre tank could save around £14 per week—translating to over £700 annually. Dutton stressed that this policy would make a noticeable difference for families, making everyday travel more affordable.

The Coalition has already made a statement on cost-of-living priorities by rejecting Labour’s income tax cuts in Parliament, opting instead to present an alternative money-saving strategy.

Will Road Funding Be Affected?

The fuel excise is a tax levied on fuel suppliers at the point of distribution, with costs typically passed on to consumers in line with wholesale price movements. Previous reductions in this tax have led to noticeable price drops across the country.

During the previous Coalition government, a temporary six-month excise reduction helped cushion the blow of rising fuel prices. However, Labour chose not to extend it, citing budget constraints. Ahead of that expiration in 2022, Dutton had pressed the government in Parliament about whether they would continue the discount.

With petrol prices remaining above £2 per litre in late 2023, Independent MP Dai Le also called for reintroducing the cut. At the time, Liberal MP Warren Entsch pointed out that fuel tax revenue traditionally supported road infrastructure.

However, the Coalition argues that in recent years, fuel excise revenue has functioned as a general tax rather than being directly tied to road funding. As a result, they insist that cutting the excise will not impact the maintenance or development of the nation’s road network.

With cost-of-living pressures front and centre this election, the battle between the major parties over financial relief measures is well underway. Whether voters will opt for Labour’s longer-term tax approach or the Coalition’s immediate fuel savings remains to be seen.

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