When it comes to petrol prices, just how bad do Australians have it?

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With the cost of living you keep biting, the coalition says it will reduce gasoline prices if chosen.
The opposition leader, Peter Dutton, has proposed to reduce the special fuel tax for 12 months, leaving it from 50.8 cents per liter to 25.4 cents.
The measure is expected to cost $ 6 billion if it goes ahead, and is promoted to deliver taxpayers a saving of $ 14 per week.

But in a global context, are the Australians really pay too much in the Bowser, and reduce gasoline taxes would really help relieve pressure?

Where the prices of Australian gasoline sit on the global stage

While it may seem that your bank account is running out every time it is filled, Australians actually pay less per liter than many other countries.
According to Globalpetrolprices.com, the average cost of gasoline in Australia is $ 1.65 per liter, well below the global average of almost $ 2 per liter.
In the United Kingdom, the average is $ 2.79, while European countries such as Iceland ($ 3.70), the Netherlands ($ 3.25) and Italy ($ 3.04) disburse almost twice the Australian rate.

On the contrary, the United States averages just under Australia at $ 1.45, with Vietnam ($ 1.27), Indonesia ($ 1.32) and Malaysia ($ 0.73) that enter even more.

A graph that shows fuel prices worldwide.

While Australians can feel the pinch every time they are filled, gasoline prices in Australia are lower than those of many other countries. Fountain: SBS news

So are we imposed more than other countries?

Yogi Vidyattama, an associated professor at the School of Policy, Economics and Society of the University of Canberra, says that the Australians are “in the middle” when it comes to fuel taxes worldwide.
“In general and in the world context, the base price is quite similar,” he says about gasoline prices worldwide.
“It is more expensive than the United States, but it is lower than European countries due to that high special tax.”

In the European Union, for example, each Member State must raise a minimum of € 0.36 (61c) per liter in gasoline and € 0.33 (56c) in diesel.

A graph that shows different fuel taxes in each country.

Australia is doing relatively well when it comes to fuel improvisos. Fountain: SBS news

John Hawkins, a professor at the University of Canberra, says that relatively lower taxes are a reason why we pay less in the Bowser.

“Australia has lower fuel taxes than most OECD countries,” he told SBS News. “As a result, Australian gasoline prices are lower than in most OECD countries.” The OECD is a group of 38 countries with large market economies.
When it comes to placing these prices against our average salaries, Australia begins to go even better.

Vidyattama estimates that each home in Australia consumes around 30 liters of gasoline per week, which is equivalent to approximately $ 60, or 3 percent of the average income in Australia.

But global prices do not tell the full story

While Australia can have a lower fuel special than many countries, that does not mean that the general impact of the tax on household budgets is small.
On the one hand, Australia is a cars -dependent country, much more dependent on vehicles than many other OECD nations, especially those of Europe.

“Even in the United States, the level of public transport is much better than Australia, especially outside capital cities,” Vidyattama said.

Hawkins agrees: “The Australians drive more than Europeans because our cities extend and do not have a good public transport, which makes us more dependent on the car.”
According to the 2022 census, the average Australian home has 1.8 vehicles. More than 90 percent of households reported that they owned at least one car, and more than half (55 percent) had two or more.

“It simply shows how dependent is Australia in the car and, therefore, in the fuel,” said Vidyattama.

A graph: How often do you fill your car?

Are you looking to save on your gasoline prices? The data says it should be filled more frequently. Fountain: SBS news

“In some cities like Melbourne and Sydney, there is probably less dependence on cars for daily trips,” he added. “But in other cities and regional areas, car dependence is much greater.”

He also points out that geography plays an important role. “Where he lives and the quality of public transport in these areas affects how much prevents fuel tax really his daily budget.”

Hawkins adds that Australians also tend to drive larger and less efficient fuel vehicles, another factor in our general gasoline expense.

So, would it help cut the special tax?

In its budget response, the opposition proposed to reduce the fuel tax from 50.8 cents per liter to 25.4 cents. He said the cut would save a driver who fills the average tank of 55 liters every week around $ 14 per week.
But Vidyattama is skeptical. “I was thinking that the number is inflated,” he said.

Hawkins says that the figures seem to be based on the assumption that households are spending $ 10,000 a year in gasoline, something that can only be true for a small number of people living outside the main cities.

And, as Vidyattama points out, not everyone will benefit: “Those who do not conduct will not see any benefit of the fall of special taxes.”
While proposed changes can push prices slightly, savings may not be significant for each home, particularly those with better access to public transport or lower fuel needs.

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