The Federal Government will halve the fuel excise on petrol and diesel for three months in an effort to take the edge of rising fuel prices.
The $2.55 billion move was announced after a meeting of the National Cabinet today. It will start on April 1, 2026 and run to June 30.
Prime Minister Anthony Albanese said the move would reduce the cost of fuel by 26.3 cents per litre.
This equates to nearly $19 for a 65 litre tank.
“The spike in fuel prices as a result of the war in the Middle East is hurting Australians and causing financial stress,” Mr Albanese said is a statement. “This will help to provide some relief.”
Federal and State Governments have also agreed on a National Fuel Security Plan.
The Government also announced:
- The Heavy Vehicle Road User Charge will be reduced to zero for three months
- The next scheduled increase in the Heavy Vehicle Road User Charge will be deferred by six months
The Government will encourage people to use public transport wherever possible to help conserve fuel for the regions.
The Australian Competition and Consumer Commission (ACCC) will also continue to monitor fuel prices to help ensure that the lower excise rate is fully passed on at the bowser.
“While Australia’s fuel supply outlook remains secure in the near term… the longer this war goes the worse the impacts will be,” Mr Albanese said.
“We are acting now to prepare and shield Australians.”
Other measures since the Middle East conflict began have been:
- New laws to double penalties for petrol companies who price gouge
- A national Fuel Supply Taskforce Coordinator and Taskforce appointed
- 20 percent of Australia’s petrol and diesel fuel reserves, targeted at regional areas, released
- Changed fuel standards aimed at getting more fuel flowing
- Changed diesel standards so Australia’s refineries can supply more diesel
- ACCC tasked with ramping up fuel price monitoring and issuing on-the-spot fines
- International partners engaged to keep supply flowing, including securing a supply agreement with Singapore
- Laws introduced to ensure companies pay truckies fairly when fuel prices spike
More measures are expected to be announced in coming days and weeks.
