‘Band-aid solution’: Think tank echoes calls not to cut fuel excise

The price of oil has sky-rocketed amid international tensions and pain is being felt at the petrol pump.

However, the head of the Australian Automobile Association says the fuel excise should still not be cut, since that money goes to road funding.

Transport and Cities Program Director at the Grattan Institute, Marion Terrill, told Tom Elliott she agrees it shouldn’t be cut.

“If the government were to cut fuel excise, it’s a bit of a band-aid solution, because there’s a lot of global forces pushing the price up,” Ms Terrill said on 3AW Drive.

“A better long term strategy really is to reduce our dependence on imported fuel.”

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