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Fuel prices in Sydney to be slashed at midnight tonight

Gasoline prices will be cut at midnight TONIGHT as Josh Frydenberg confirms government will cut fuel tax

Petrol prices will be cut for Australians, while the government will cut fuel taxes.

Josh Frydenberg has confirmed the “temporary and targeted” measure, which will take effect Tuesday at midnight, after the treasurer hands over the federal budget.

Oil prices in Australia have risen to more than $2.20 a liter amid rising global inflationary pressures and Russia’s invasion of Ukraine.

“If you’re a family that needs your car to get to and from work to take your kids to school, if you’re a traditional man doing a day job, you see the higher price for gasoline and what it will take you home,’ Mr Frydenberg said during a pre-budget speech.

“And so what we’re going to try to do with this budget is to provide cost-of-living relief for those Australians who pay higher prices at the Bowser.”

Treasurer Josh Frydenberg (pictured) has given the green light to the temporary freeze with news to be officially announced when the budget is released on Tuesday

Treasurer Josh Frydenberg (pictured) has given the green light to the temporary freeze with news to be officially announced when the budget is released on Tuesday

Oil prices in Australia have risen to more than $2.20 a liter amid rising global inflationary pressures and Russia's invasion of Ukraine.

Oil prices in Australia have risen to more than $2.20 a liter amid rising global inflationary pressures and Russia’s invasion of Ukraine.

But while the move will be very welcome by Aussie motorists, it may not have a substantial impact at the pump.

The fuel tax is 44 cents per liter and it looks like the government will cut the excise tax by 20 cents to 24 cents per liter.

That means a gasoline that now sells for about $2.20 a gallon is still worth $2.

As fighting continues in Ukraine with Western powers imposing sanctions on Russian oil producers, the possibility remains that prices could soar even higher amid the supply shortage.

NRMA spokesman Peter Khoury said that while the government has the ability to ease pressure by cutting excise taxes, it has no power over global oil prices.

“First of all, if the oil price goes up again, the 20 cents will of course be eaten,” he told news.com.au.

And the second is the profit margin. So that’s something the government needs to pay close attention to once it’s in.”

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