Fuel excise cuts would be a “political Band-aid” that could worsen petrol shortages and add to inflation, economists have warned.

The mining billionaire Gina Rinehart, Tasmania’s state premier and Liberal opposition leaders in New South Wales and Victoria have called for the Albanese government to cut the excise on petrol and diesel.

Petrol prices have surged to 250c a litre and diesel about 300c per litre, from 180c at the start of March. Retailers such as service stations pay a fuel excise for both, set at 52.6c a litre.

The federal Liberals and Nationals had so far steered clear of joining their calls on Wednesday. The treasurer, Jim Chalmers, said the government was not considering the move.

Richard Holden, an emeritus professor of economics at the University of NSW, said it would be a “very bad idea” for the government to cave to growing pressure.

“That is simply going to make demand higher than it otherwise would be, which is going to make the fuel shortages we’re already experiencing worse,” he said.

Higher prices would encourage cuts to fuel use from those who could afford to, he said. Australia is facing uncertain fuel supply in coming weeks and the government has not capped households’ petrol purchases.

Excise cuts also risked adding to Australia’s high inflation rate by enabling some households with enough income to spend more, Holden said.

“It’s going to make inflation worse, and it’s really a political band-aid rather than any kind of sound economics,” he said.

Halving the fuel excise for a month would hand back about $23 to inner-city households, $35 to regional households and $38 to outer-suburban households, according to 2025 analysis from the University of Canberra’s John Hawkins and Yogi Vidyattama.

Fabrizio Carmignani, an economics professor at the University of Southern Queensland, said the revenue from the excise tax would be better spent on cost-of-living policies for poorer households.

Scott Morrison’s government halved the fuel excise at a cost of nearly $1bn a month for six months after Russia’s invasion of Ukraine sent oil prices surging in 2022.

Well-off households took the biggest share of the benefits as they tend to use more petrol, e61 Institute research has found.

Lower-income households are worst affected by fuel price spikes, though, according to Adit Maitra, an e61 economist, meaning an excise cut would not be targeted at supporting those in most need.

“Everyone receives the benefit, even households and perhaps businesses that we might think that the government shouldn’t be supporting at this time,” Maitra said.

Australians under financial strain may be better supported by boosts to payments like jobseeker, commonwealth rental assistance and family tax benefits, he said.

A spokesperson for Rinehart’s company, Hancock Prospecting, said Rinehart had long advocated for cuts to fuel excise.

“It seems you’ve only spoken to leftwing, high-tax-loving economists who have offered a predictably one-sided assessment,” the spokesperson said.

The NSW opposition leader, Kellie Sloane, said the Albanese government should still consider cutting the excise regardless of economists’ concerns.

“It’s a very hefty tax,” Sloane said. “Rather than a flat no from Canberra, how about show us your figures, demonstrate why you think this won’t work?”

Sloane and her Victorian counterpart, Jess Wilson, have each written to Anthony Albanese requesting an excise cut.

Wilson, when asked whether an excise cut would worsen shortages or inflation, said: “Victorians households and businesses need cost relief now, that is why I have called on the prime minister to temporarily cut the fuel excise.”

Additional reporting from Penry Buckley