Australians will soon see some relief at the petrol pump, with the federal government announcing a temporary cut to fuel tax.
In a joint statement issued after a National Cabinet Meeting, Prime Minister Anthony Albanese, Treasurer Jim Chalmers, Climate Change and Energy Minister Chris Bowen and Infrastructure Minister Catherine King said the fuel excise on petrol and diesel will be halved for three months.
The change will take effect from April 1 to June 30, cutting fuel prices by about 26.3 cents per litre. For a typical 65-litre tank, that means a saving of close to $19.
The government said the recent spike in fuel prices, driven by the conflict in the Middle East, is putting pressure on households, and the temporary cut is aimed at easing that burden.
Alongside this, the government will remove the Heavy Vehicle Road User Charge for three months and delay its next increase by six months to support truck drivers and keep supply chains moving.
The Australian Competition and Consumer Commission (ACCC) will monitor fuel prices to ensure the tax cut is passed on to consumers.
Australians are also being encouraged to use public transport where possible, particularly to help conserve fuel in regional areas.
The government said it has already taken several steps in recent weeks, including releasing part of Australia’s fuel reserves — with a focus on regional areas — strengthening penalties for price gouging, increasing monitoring of fuel prices, and working with international partners to secure supply.
It has also made changes to fuel standards to increase supply, set up a national fuel taskforce, and introduced measures aimed at ensuring fair pay for truck drivers during price spikes.
While fuel supplies remain stable for now, the government warned that a prolonged conflict could worsen the situation.
A National Fuel Security Plan has also been agreed to strengthen Australia’s longer-term fuel resilience.
The government said further measures will be announced in the coming weeks as it prepares for ongoing global uncertainty.
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