Declining fuel excise is a problem, except when it's not.

The federal opposition leader, Peter Dutton will halve fuel excise for 12 months if elected at the federal election in early May. Citing cost of living relief, the measure would reduce the average price of petrol by about 14 cents per litre, with savings around $750 per year for most households. 

But if you're in the market for a new or used vehicle, an electric vehicle (EV) will start saving you up to $3000 per year in fuel not purchased, and significantly reduced service costs.

The AEVA points out that last time fuel excise was temporarily halved, fuel consumption and emissions increased, and as expected, revenue from fuel excise dropped. Deliberately cutting revenue is not normally considered a fiscally prudent response, unless the intention is to replace the fuel excise (and fuel tax credit scheme) with a universal mass × distance road user charge. Something AEVA has been recommending for over a decade.

A statement from AEVA can be found in our press release here.