Scott Morrison isn't about to offer motorists a helping hand and freeze fuel excise in next month's federal budget to try to mitigate record high petrol prices.
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The prime minister says the price of fuel is a global issue, as crude oil prices neared $US100 a barrel with the Ukraine and Russia on the brink of all-out war.
"The advice we are getting, particularly out of the International Energy Agency, is that this impact is likely to be short-term, it's likely to be temporary," Mr Morrison told the Nine Network on Thursday.
"You don't go and completely recalibrate your budget based on fluctuations in oil prices."
Outgoing Australian Competition and Consumer Commission chair Rod Sims told the National Press Club on Wednesday with petrol taxation in Australia the fourth lowest in the world he wouldn't be recommending that the government step in and do anything.
Energy Minister Angus Taylor also says Australian petrol and diesel prices are around 25 per cent lower than the OECD average.
However, this would be of little comfort to the average household which has seen their monthly bill filling up the car increase to just of over $250, a $67 increase over the past year.
The Australian Bureau of Statistics said on Thursday average weekly ordinary time earnings for full-time adults was $1748 as of November, a 2.1 per cent or $37 increase compared to a year earlier, and well behind the rate of inflation.
Rising fuel costs have been a key driver of rising inflation in the past year, with the consumer price index currently standing at 3.5 per cent.
Separate research also shows while the average Australian household has never felt better financially, there are concerns around the prolonged impact of COVID-19 and cost of living pressures creeping in.
The ME household financial comfort report found one-in-three respondents predicting a negative long-term impact from COVID-19 and a near-record two-in-five worried about the cost of living.
Even so, strong household spending is expected to have provided a major lift for economic growth in the final three months of 2021 as Australia was recovering from the impact of Delta lockdowns.
Next Wednesday's national accounts for the December quarter are expected to show the economy expanded by around a hefty three per cent following the 1.9 per cent contraction in the September quarter.
However, economists admit there is now some downside risk to the result after Wednesday's data showed an unexpected fall in construction work completed in the December quarter and Thursday's smaller than expected 1.1 per cent rise in business investment.
"No doubt, household consumption will prove to be very strong during the December quarter, but this goes to show it wasn't all smooth sailing for every part of the economy at the end of 2021," EY senior economist Johnathan McMenamin said.
However, the ABS survey showed the initial estimate for business investment for the 2022/23 financial was $116.7 billion, 10.8 per cent higher compared to the first estimate for 2021/22.
Treasurer Josh Frydenberg said the outlook looks set to continue to strengthen.
"This is being driven by the non-mining sector with Treasury forecasts showing non-mining business investment is expected to lift to a record $200 billion next year," he said.
"The strong investment activity has been underpinned by the Morrison government's unprecedented business investment incentives, which are setting Australia up for the future."
Australian Associated Press
