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Australia Extends but Reduces Tax Relief on Gasoline

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The Australian Department of the Prime Minister and Cabinet has confirmed a one-month extension to a tax cut on fuel sales, it said on Monday, but decreased it by half.

Effective July 1 through Aug. 2, the federal government will cut fuel excise duty by 16 Australian dollar cents ($0.11) per litre on both gasoline and diesel, it said.

The tax cut is now half of the initial 32 cents introduced after the start of the Middle East conflict that shuttered the key Strait of Hormuz for several months, almost completely shutting off the region's exports of crude oil and natural gas.

"Continued cuts will help to keep prices lower at the pump and limit flow on price increases for groceries and other goods," the department said.

The Australian Competition and Consumer Commission will step up oversight to prevent manipulation of retail margins, the department said.

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