Why the PM’s fuel excise cut will drive the RBA mad

March 30, 2026 — 2:52pm

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Anthony Albanese has set himself and the nation’s mortgage holders on a collision course with the Reserve Bank.

Monday’s decision to halve fuel excise for three months gives 26 cents a litre relief to motorists, but those with a home loan will likely pay for it with higher repayments.

Adding more than $2.5 billion into the economy, which is already feeling inflationary strains, will only end up in pain.

It was a bad policy when Angus Taylor announced a similar plan last week.

That prompted independent economist Saul Eslake to warn that an excise cut would increase the chance of a rate hike. That warning sticks for this move by Albanese.

Let’s not adopt drongo economics to deal with high-priced fuel

Shane WrightSenior economics correspondent

Senior economics correspondent

Told about prime minister’s announcement, Eslake noted: “The government giveth, the RBA may well taketh away.”

Cutting the price of liquid fuels will only........

© Brisbane Times