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

March 26, 2026 — 12:23pm

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It’s taken just a few days for some utterly terrible ideas to be proffered as ways to deal with the inflation fallout from the war against Iran.

From completely axing petrol and diesel excise - which would punch a $24 billion hole in the federal budget - to making public transport free, if there’s a dumb idea, it’s being embraced by people who should know better.

It is almost as if the lessons we collectively learned from pandemic, when this country and many others experimented with ways to offset its impact on the economy and inflation, have been forgotten or ignored.

Let’s start with the soaring price of oil.

It’s a price signal. Like the price of bananas or air conditioners or acupuncturists, if there are too many, prices fall. If there are too few, prices climb.

Higher interest rates, higher inflation and higher petrol prices: Jim Chalmers’ nightmare scenario is here

As much as it may not be pleasant, sky-high prices are telling consumers and businesses that if you really want to use petrol or diesel, then you’re going to pay through the nose for........

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