The Association of Mining and Exploration Companies (AMEC) applauds the action taken by the Federal Government and National Cabinet to deliver immediate fuel relief for Australian households and industry, with CEO Warren Pearce noting that this “will deliver direct results”.
The move comes as a response to the global fuel shock caused by global geopolitical tensions, particularly the conflict in the Middle East, which has seen the closure of the Strait of Hormuz, a key waterway transporting LNG and and oil out of the region to global markets, and the overall disruption of global supply chains.
These disruptions have resulted in skyrocketing fuel prices.
The Australian Government has now responded with fuel relief measures, including a temporary halving of the fuel excise for three months, together with a National Fuel Security plan to help manage supply disruptions and stabilise supply across the country.
AMEC notes that these measures should provide “much needed certainty” in a time of global disruption.
“At a time of global fuel shock, cutting the fuel excise in half provides some needed cost relief for industry and households right across Australia,” Pearce says.
“This is the kind of accelerating action industry needs and the country needs.
“It ensures operations can continue and supply chains remain intact for industry and regional economies.”
The fuel excise cut is expected to reduce fuel costs by more than $0.25 per litre.
This is critical for Australian industry and will help to ensure that exploration and mining operations can keep moving, particularly in Australia’s more remote locations.
On the sidelines of the Gold Coast Gold Conference last week, PC Gold (ASX:PC2) noted that they will refrain from ordering excessively priced fuel, as reported.
In an interview with Mining.com.au, Executive Chair Ash Pattison said that the company is choosing more fuel efficient equipment to help reduce the company’s $4,500 daily rigging costs.
The Government’s measure should provide more stability for both industry and households, ensuring Australia’s exploration and mining operations can continue to move forward.
Write to Amy Rotman at Mining.com.au
Images: Australian Government, Department of the Prime Minister and Cabinet
