The government has just announced it will halve the price of fuel excise for three months in order to reduce the climbing cost of petrol and diesel.
The heavy vehicle road user charge will also be temporarily scrapped, helping truck drivers manage rising fuel costs linked to the global impact of the Iran war.
Prime Minister Anthony Albanese announced the changes following a National Cabinet meeting with state and territory leaders.
“Additionally states and territories have agreed and are finalising a proposal to ensure they won’t benefit from the elevated prices that are occurring because of the GST,” Prime Minister Albanese said.
“We’re working through the mechanisms with states and territories, and we’ll have more to say about that in a short period of time.”
It’s been reported the fuel excise reduction will take effect from Wednesday, dropping from 52.6 cents per litre to 26.4 cents.
Albanese also encouraged Australians to consider public transport where possible to help ease pressure on fuel demand.
The move comes as global fuel markets remain under pressure, driven largely by escalating tensions in the Middle East involving Iran. The region plays a critical role in global oil supply, and even the threat of disruption can send prices surging.
Australia is particularly vulnerable to these shifts, importing the vast majority of its refined fuel. That means global price spikes are often felt quickly at the bowser, with flow-on effects hitting everything from transport and groceries to travel and construction.
While the excise cut and temporary measures are expected to provide short-term relief, broader fuel costs will continue to be shaped by global conditions, currency fluctuations and ongoing supply pressures.
More information to be announced.
