Long-term solution needed to fuel shortage, says south-west business owner

Warrnambool Radio Taxis owner Andrew Watson said he was pleased the federal government had stepped in to offer some relief for business owners struggling with the rising petrol costs.

"It certainly helps - there's no doubt about that - every little bit helps," Mr Watson said.

He said the reduction meant he would no longer have to consider a fare increase.

Mr Watson spoke about the rising fuel costs earlier this month, saying skyrocketing petrol prices were another blow to the business, which is struggling to find enough drivers to meet demand.

"We're obviously not feeling very good about the rising cost of petrol, but it's totally out of our control," he said.

"The rising costs chews away a fair bit at our margins."

Meanwhile, Boyle's Transport owner Anthony Boyle said he believed the money could have been better spent.

Mr Boyle said the reduction - which will remain in place for six months - was a short-term solution to a bigger problem.

"I would have preferred if they spent the money to build a fuel supply facility," he said.

Mr Boyle said when the country faced an AdBlue shortage, this was what the government did - invested money in building a facility that would produce it. "We're producing oil that we can't refine and address the issue," he said.

Mr Boyle said Australia needed a long-term strategy to address rising fuel prices.

"If you compare the price of fuel here to the US, their price is probably 60 per cent lower than us," he said.

"Instead of reducing the price of fuel for a period of time, I would have preferred they invest in a long-term solution."

The Committee for Economic Development of Australia (CEDA) said the budget had only taken modest steps to permanently lift the capacity of households to navigate the growing pressures on the economy.

"The $8.6 billion of cost-of-living measures mostly benefit income earners and motorists, with many income support recipients receiving the least relief from cost-of-living pressures," CEDA chief economist Jarrod Ball said. "With growing inflationary pressures and interest rate rises on the horizon, cost-of-living pressures will not dissipate any time soon and these measures do not provide a long-term solution."

The Australian Small Business and Family Enterprise Ombudsman Bruce Billson welcomed the temporary measure.

"This will go some way towards easing this key input cost, particularly for those in the transport sector," Mr Billson said.

"These savings at the pump are expected to flow through to service stations in the coming weeks with the ACCC ensuring those savings flow through."

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