The US-Iran deal is shaping Labor’s thinking on extending fuel excise relief
Labor appears more likely to let its fuel excise cut expire at the end of the month after the US and Iran confirmed a deal to suspend the Middle East war.
The imminent reopening of the Strait of Hormuz has increased the likelihood Labor will not extend its fuel excise cut, as oil prices dropped on news of a deal to suspend the Middle East war.
US President Donald Trump confirmed on Monday that an agreement to extend a ceasefire for 60 days, which he claimed would bring “peace and security” to the entire Middle East, will be signed on Friday.
While key details remain unclear, there were indications from all parties that the Strait of Hormuz, through which a fifth of the world’s oil supply flowed, would reopen within a month.
The agreement comes at a beneficial time for Labor as it weighs the future of its $2.5 billion fuel excise cut, set to expire on 30 June, which currently cuts the price of fuel by 32 cents a litre at the bowser.
