WA Premier Roger Cook urges businesses to scrap fuel surcharges as excise is halved amid global oil crisis

Roger Cook has called on businesses to axe fuel surcharges, imposed since the Iran war sent prices spiralling higher, declaring the Prime Minister’s decision to halve fuel excise is enough to absorb the cost.

The WA Premier welcomed the decision after a meeting of National Cabinet on Monday, though it’s unclear how quickly the saving of 26.4 cents per litre should be passed on at the fuel bowser.

He said it should mean extra charges imposed by businesses to absorb the higher cost of travel, shouldn’t be needed anymore.

“Fuel surcharges should not be necessary,” Mr Cook told reporters.

“We’ve got the appropriate mechanisms in place to take out of the system all the harshest impacts of crude oil price increases.

“We want everyone to do the right thing and just make sure that you buy only what you need, no more, no less, and that fuel companies do the right thing by their customers.”

The states have also agreed to forgo the extra GST that would flow their way as a result of higher fuel prices.

“We’re waiting for some modelling to come back from the Commonwealth in terms of what that looks like, and what next measures we can take in relation to that,” Mr Cook said.

A four-stage national plan has been announced to manage the fall out from the “fuel shock” that the Premier said has been sparked by the Middle East conflict, and Iran’s blockade of the Strait of Hormuz.

Iran’s Parliament has moved legislation to impose toll fees on ships passing through the portal to the Persian Gulf, suggesting the war’s impact on global trade could be long-lasting.

National Cabinet has declared Australia is at level two of the nation plan to “keep Australia moving”, with the Premier confident petrol rationing and travel restrictions possible under level four won’t be required.

“There is no desire to mandate Covid-era restrictions on Australians, and there is no need to at this stage,” he said.

“People are making their own choices to deal with the rising prices. If we need to move to level three, an approach will be developed by national cabinet that provides incentives and mechanisms to encourage other voluntary measures.

“It would not be until we get to level four that we would consider any mandated demand management responses.

“Ultimately, level four is that level where we would seek to mandate any consumption or distribution, but we’re a long way from that.

“We want to continue to work with the community and with the industry to make sure that we get through this issue together.”