I would like Albo to take an IQ test. I think he would come in well below average.
Labor MPs were “perplexed” by Anthony Albanese’s decision to slash the fuel excise, saying they were surprised the government had moved ahead with a plan many of them were against and that the Prime Minister had no long-term fuel policy.
The government has argued that the spending is necessary to ward off a recession and avoid similar economic dysfunction to the Covid pandemic.
In short, the ALP is pleased to admit that it will increase demand. This is the problem on two fronts.
First, many economists have warned that this will put more pressure on the RBA.
Economists have warned the government’s move to halve the fuel excise to provide some relief from sky-high petrol prices could adversely impact demand for petrol and keep inflation higher.
The tax on every litre of petrol and diesel will be slashed for three months from tomorrow, with Treasurer Jim Chalmers estimating it will save Australians about $19 on a 65-litre tank of gas.
Second, and much worse, cutting the price of fuel incentivises its faster consumption.
How is that in the national interest as we hurtle towards a fuel shortage shock?
Critics often accused the Morrison government of being slow-moving and misjudging the necessary actions during the COVID crisis.
Albo has been just as bad, but now the actions he has taken are the exact opposite of what is required.
He should be taking measures to conserve fuel, not exhaust it.
Diesel rationing should begin immediately and be conserved for food production and distribution.
All public transport should be made free. Work from home should be mandated where possible.
The threat we need to address is not the price of fuel, but the inability to get enough of it.
