Budget tightrope to cut oil dependence, ease inflation

War in the Middle East and the fuel crunch it has triggered have forced a frantic redrafting of the federal budget papers. Before the conflict disrupted the narrow stretch of water that roughly 20 per cent of global oil supplies sail through, penny-pinching and reform was being touted to improve Australia’s long-term financial position. However the government has since temporarily halved the tax on petrol and diesel to give immediate relief from blisteringly high fuel prices at a $2.5 billion cost to the public purse. “There’s a real tightrope they’re going to have to walk to get it right,” reckons…