With diesel hovering around $3 a litre at local service stations, the Coalition has promised an automatic cut to fuel tax whenever global oil prices soar.

Federal Member for Page Kevin Hogan says the Coalition’s new “Fuel Price Shield” would automatically halve the fuel excise when the two-week average price of Brent crude rises above US$100 a barrel.

The Coalition estimates the measure would cut tax on fuel by about 27 cents a litre, saving around $15 on a typical tank.

The proposal comes as motorists across the Northern Rivers face another sharp rise in fuel costs, with E-10 unleaded selling for just under $2.40 a litre at most Ballina outlets today.

Mr Hogan said regional motorists were particularly exposed to rising prices because driving was often unavoidable.

“In regional Australia you cannot just decide to stop driving,” he said.

“People often travel long distances for work, school, medical appointments and the weekly shop.”

Under the proposal, the tax reduction would take effect from the Monday after Brent crude had averaged more than US$100 a barrel for two weeks.

The normal excise would return when the eight-week average fell below US$100 or after three months, unless the government decided to extend the relief.

The Coalition says the scheme would have been triggered only twice during the past five years, during the global oil price shocks of early 2022 and again in March this year.

It estimates the measure would cost the Federal Budget about $950 million for every month it operated.

Truck and bus operators would receive additional relief, with the heavy vehicle road user charge temporarily reduced from 32.4 cents a litre to zero.

Mr Hogan said cutting transport costs would also help businesses and consumers because rising diesel prices flow through to the cost of moving food, freight and other goods.

“Higher fuel prices also flow through the entire economy,” he said.

“They increase the cost of moving food, freight and supplies around our country.”

The Federal Government has rejected the Coalition proposal.

Treasurer Jim Chalmers described the plan as “uncapped and unfunded” and said the government was not currently considering another fuel excise cut.

The Albanese Government temporarily cut fuel excise earlier this year as soaring global oil prices pushed up Australian bowser prices, but that relief has since ended.

The Coalition says its proposed Fuel Price Shield would be funded through savings it expects from its separate plan to overhaul tobacco taxation.