“We were told we’d need to wait until the local service stations had emptied their fuel containers and received the cheaper wholesale delivery. Ironic when you consider how quickly the prices went up!” writes political columnist MICHAEL MOORE.

Australian governments pay lip service to dealing with the cost of living with variable responses between jurisdictions. In the case of the ACT, the focus is on Canberrans with low incomes. 

The headlines are on the fuel crisis resulting from the Israeli-US war under Netanyahu and Trump. Shortly after the attacks on Iran by these warmongers, the impact on international fuel and fertiliser prices soared.

Some action on supply and distribution was taken by the Australian government in the early stages to mitigate against the problems. However, blatant price gouging in the petrol and diesel sectors has undermined these efforts to some extent.

When the price of oil on the international market climbed in Australia and internationally after Iran responded to those attacks by closing the Straits of Hormuz. Even though the first impact of the global price of oil was on wholesale prices, the petrol stations were putting their prices up almost immediately.

The announcement by the government to eliminate the 26 cents a litre excise on fuel for three months is intended to help with the cost of living. Some economists worry about the inflationary impact. However, the government is right in moving to provide some relief for such a rapidly increasing cost. At the same time, some states moved to providing free public transport.

Ironically, the price drop came on April Fools Day. How appropriate – no savings that day! The explanation offered was that the excise was on wholesale fuel and customers would need to wait until the local service stations had emptied their fuel containers and received the cheaper wholesale delivery. Ironic when you consider how quickly the prices went up! 

Thanks to the previous federal government, the ACCC apparently did not have the power to act on price gouging when these increases first occurred. Fuel wholesalers put prices up quickly, but someone is ripping consumers off being so slow to pass on the excise cut.

The ACT government is also playing its part in dealing with cost of living. It is focused on low-income families and starts with a Permanent $800 Electricity, Gas and Water Rebate. Additionally, there is the $150 Energy Bill Relief Fund. Eligibility for this sort of support does have strict criteria as they are aimed at helping families on low income.

The ACT government does have a Cost of Living Support website that provides a clear understanding of entitlements. It covers support for parents, households, older Canberrans and students. The sort of support available is outlined as Bills, Health Care Costs, Renting or Buying a Home, Transport, and Sustainable Homes and Transport.

The 2024-25 ACT Budget contained a Cost of Living Statement. Even before the fuel crisis, it was clear that governments had to address the cost of living.

The introduction to this statement says: “Many people [are] enjoying among the highest living standards in the country. However, some in our community on low and fixed incomes need assistance with cost-of-living pressures”.

ACT budget fees exacerbate fuel crisis

Exacerbating the current fuel crisis is the ACT budget’s ongoing increases in “car-related fees, including driver licence fees, registration fees, and the road rescue fee will increase by four per cent, in line with the previous year’s Wage Price Index”. And then, there are the increases in rates!

Although many of the ACT programs have, at least in part, been on the government’s agenda for several years, they are important for people who are struggling with increasing costs while there is little or no increase in their salaries.

I am reminded of studying history in my undergraduate years and wondering why so many people put up with the huge wealth of the royalty, the nobility and the churches while struggling to eke out a living and provide enough food for their children. History repeats itself.

According to the Australian Financial Review the “top 10 richest (Australian) individuals now hold a combined wealth (of $202 billion) equal to over 11 per cent of the country’s annual economic output”. 

Governments in Australia continue to subsidise large parts of the mining industry. It comes as little surprise to most of us that, of the top 10 richest people in Australia, at least four have accumulated their wealth through mining. 

It is no wonder that ACT senator David Pocock has been successful in finding so much support for appropriate taxation of our gas resources. The loss of the Rudd Super Mining Profits Tax was a disaster for Australians and still has an impact on cost of living today.

Michael Moore is a former member of the ACT Legislative Assembly and an independent minister for health. He has been a political columnist with CityNews since 2006.