Interview with Natalie Barr, Sunrise

NATALIE BARR: The Prime Minister is cutting the tax on fuel in half to help ease soaring costs around the country. That means motorists will save around 26 cents a litre, which is about $12 a tank for a small sedan and around $21 for a twin cab ute. The Government is also scrapping the heavy vehicle road user charge to help ensure freight and food costs do not surge even higher.

But this relief is only temporary, with attention now turning to a longer-term plan. For more, Energy Minister Chris Bowen joins us live. Good morning to you.

First off, tell us how this is going to be policed. If I turn up at the servo tomorrow morning and the price has not changed, who do I call? CHRIS BOWEN: Good morning, Nat.

Well, that is a great question. Firstly, I think it is a really important question because the first thing I should say is we have announced we are passing this tax cut for petrol and diesel, and the road user charge as well for heavy vehicles. We will pass that through the Parliament, and it applies from tomorrow.

But this is really important. The fuel in the tank at the service station might have been there for days. They have already paid the tax.

So please, if you turn up tomorrow and the price has not gone down, they are just waiting for the new petrol with the lower tax to come in. It is really important we do not yell at the poor person behind the counter and say they have not passed on the petrol tax cut yet, because it will take a little while. NATALIE BARR: How long is a little while?

CHRIS BOWEN: Well, days in city areas. It can be a bit longer in regional areas because they have already paid the tax on the petrol in the tank. But to your broader question, the ACCC will be watching very, very closely.

We have increased the penalties very substantially for people who are profiteering in this crisis. I think the vast majority of people are just trying to do their best to get petrol to their customers. I know that is the case with everyone I speak to.

But in a big economy with a big number of players, you will always find a few who decide this is a chance to make a bit of money. We have increased the powers for the ACCC. We have increased the fines.

This is really the main game in town for them at the moment. They are independent of government. They are like a police force of the economy, if you like.

So we cannot get in and say, fine this person, fine that person. It is up to them. But we have really given them the powers they need and the fines they need to do the job.

NATALIE BARR: Okay, so the cut in excise comes in tomorrow, or at midnight tonight. How long do we give a station to cut the fuel by 26 cents? Are you talking Friday?

CHRIS BOWEN: Yeah, look, it will vary from station to station, but I just really wanted to make the point. As I said, city stations turn over more regularly, obviously. Bush stations turn over more slowly.

I thought it was really important to make the point that I really feel for the people behind the counter, people might turn up tomorrow going, great, Albo's cut the tax, it will be 26 cents a litre cheaper. Well, as I said, the petrol that is already at the service station, they've already paid that tax, so the lower-tax fuel has not yet arrived. NATALIE BARR: Friday lunchtime?

What should we say? You are the Minister. When we turn up there, should we say the Minister told us it should be cut by?

CHRIS BOWEN: Twenty-six cents a litre. NATALIE BARR: CHRIS BOWEN: Well, as soon as the new petrol arrives that they have not paid the tax on. NATALIE BARR: So, rough timing?

Friday? Saturday? CHRIS BOWEN: Well, as I said, it can be days in city stations.

It can be quicker for some. For others, it might take a bit longer. NATALIE BARR: Could be the weekend?

Could be Easter Sunday? CHRIS BOWEN: We have done this on purpose this week, Nat, because we know a lot of people are travelling at Easter. NATALIE BARR: Like, Good Friday?

CHRIS BOWEN: As I said, we have done this on purpose because we know people are travelling at Easter. Importantly, Nat, we have also cut the road user charge for trucks because people are buying food and the trucks take the food around, so that helps with food prices as well. NATALIE BARR: And look, the info is great.

I just do not feel like we are getting when the price is going to be at the service station. CHRIS BOWEN: Well, as soon as the new petrol that they have not paid the tax on arrives at that service station. It could be really quick for some.

For others it might take a bit longer. We have got 8,000 service stations around Australia. NATALIE BARR : Okay.

Right. Look, a lot of people are worried about the hurt that this will cause. We got this message from Joanne on the text line.

She says, “My heart sank when Albo announced the fuel tax. It means inflation will go up, interest rates will go even higher. I will not be able to afford my mortgage.” What do you say to people like Joanne?

CHRIS BOWEN: Yeah, Joanne, I hear you. But I guess I would say a few things. Firstly, this will help cut headline inflation.

I think most people who buy petrol know that if you cut the tax by 26 cents a litre. In the face of this international crisis, which we did not start, you did not start, the Australian people did not start, we are, like everyone else around the world, dealing with the consequences. The Government is doing everything we can to help.

But the other thing I would say to Joanne is the food you buy at the supermarket, that has come by truck. In most cases, that is paid for by diesel. If we make that diesel cheaper, that helps with food prices as well, Joanne.

Petrol and diesel are essential across the entire supply chain, so not just food. Everything you buy gets moved around predominantly by petrol and diesel, as well as those of us who drive around using petrol and diesel. Obviously, it helps them.

As I said, I think most Australians understand there is a war on. That war has had big impacts around the world on the economy. The Government has to look at that and say, well, we cannot stop the war.

What we can do is shield Australians against the worst impacts of this economic shock from the situation in Iran. NATALIE BARR: Yeah, look, a lot of economists are saying it will add to inflation, but you are right, we will see what happens there. Let us talk about supply, because people are confused, Minister.

Hundreds of servos across this country do not have any fuel. You say the ships are all coming in, but we see stations are empty. I think 70 across Sydney alone yesterday.

Why is the fuel not getting to the pumps? CHRIS BOWEN: I completely get it. I completely understand people saying, well hang on, I heard Bowen say there is plenty of petrol, but there is no petrol at the service station.

I get it. But I also have to tell the truth. The truth is all the ships are arriving.

The truth is that the two refineries in Australia are working full pelt, and every drop of diesel and petrol they produce goes to Australian service stations and Australian farmers. We have as much fuel in Australia today as we had when the bombing of Iran started. In fact, a little bit more.

But what we have dealt with is when the bombing of Iran started, obviously people were rightly, understandably, extremely concerned. You saw ships being bombed in the Straits of Hormuz, and a lot of people thought, well, I had better get extra fuel now. We have seen demand increase by 100 per cent.

Now, when you see anything, whether it is petrol or toilet paper or anything, when you see in a few days demand go like that, the supply chain is going to struggle to catch up. And we are still dealing with that. We are still getting petrol into service stations in some instances.

When I say “we”, I mean the companies, obviously, but they are working closely with the Government. Over the weekend, I can tell you, Nat, there was a huge amount of diesel delivered to regional New South Wales et cetera, but it is filling the gaps. It is trying to catch up with those empty tanks.

I am hopeful that we have turned a corner, that demand might level off a bit. There are a lot of people working very hard here. I want to give a shout-out to all the people refining the petrol, and to the truckies getting the petrol and diesel around Australia.

They are working their guts out to keep up with this massive demand. That is why we say the best thing we can all do is buy as much petrol and diesel as we need, no more, no less. Buy what we normally buy.

That is the best thing we can all do to try and get that supply back into balance so that there is enough petrol or diesel when we get to the service station for what we need, and what our neighbours need, and what our mates need. NATALIE BARR: Okay. And we will watch out for that price cut.

Minister, thank you very much for your time. CHRIS BOWEN: Great, Nat. Great to chat.

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