Cutting the fuel excise again will only fuel inflation, warns Chris Richardson | The Business

By ABC News (Australia)

Community Score: 50% | 1.8K views | 4w

0 community ratings: null thumbs up, null thumbs down

As the government leaves the door open to reinstate the fuel excise cut, independent economist Chris Richardson says it would "not be the best use of our money", and will only add to inflation. But seven months on from the start of the Middle East war, with the Houthis making strategic gains in the Red Sea, the oil supply challenge appears to be getting more difficult by the day. The benchmark oil price is up 60 per cent since the war began. Brent crude is $US107 a barrel. Mr Richardson says Australians are going to have to get used to higher fuel costs. Adding to the potential pain at the pump, he says, China's fuel reserves are running out. "China had a whole lot of fuel reserves heading into this crisis, and it's been running them down... to save itself money and pain, but that saves the world, including Australia, a bit of pain on the way through too... But that particular lifeline is running out of the benefit it can give to China and to the world. Basically, stocks are lower

Tags: Australia, abc, abc news, news, business news, finance news, economic news, economy, finance, the business, abc news australia, the business abc, fuel, fuel excise, fuel excise cut, renewables, EVs, Middle East War, Us Iran war, Strait of Hormus