DILI, 30 March 2026 (TATOLI) — The Australian Government will halve the fuel excise on petrol and diesel for three months, providing relief to motorists amid rising global prices caused by the conflict in the Middle East.
Following a meeting of the National Cabinet convened by Prime Minister Anthony Albanese on Monday, the government announced the excise reduction will cut fuel costs by 26.3 cents per litre. This will reduce the cost of a 65L tank of fuel by nearly $19.
“The spike in fuel prices as a result of the war in the Middle East is hurting Australians and causing financial stress. This will help to provide some relief,” said in a statement.
The excise reduction takes effect from April 1 and will run until June 30. In addition, the Heavy Vehicle Road User Charge will be reduced to zero for three months to support truck drivers, and the next scheduled increase in the charge will be deferred by six months.
Australians are encouraged to use public transport wherever possible to help conserve fuel for the regions, and we welcome existing moves to cut the costs of public transport.
The Australian Competition and Consumer Commission (ACCC) would 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 because of the actions the Albanese Government has taken, the longer this war goes the worse the impacts will be. We are acting now to prepare and shield Australians,” Anthony Albanese said.
Since the conflict began four weeks ago, the Albanese Government has taken a series of measures to maintain fuel supply and prevent price gouging, including:
- Passed new laws to double penalties for petrol companies for price gouging
- Appointed a national Fuel Supply Taskforce Coordinator and Taskforce
- Released 20 per cent of Australia’s petrol and diesel fuel reserves, targeted at regional areas
- Changed fuel standards to get more fuel flowing
- Changed diesel standards so Australia’s refineries can supply more diesel
- Tasked the ACCC to ramp up fuel price monitoring and issue on-the-spot fines.
- Engaged with international partners to keep supply flowing, including securing a supply agreement with Singapore
- Introduced laws to make sure companies pay truckies fairly when fuel prices spike
- And introduced legislation to underwrite the purchase of fuel by the private sector.
- Today National Leaders also agreed and released a National Fuel Security Plan.
The statement said the Australian Government would continue to engage key international counterparts to ensure the ongoing flow of fuel and diesel shipments to Australia and that updates would be provided to the public on these discussions and developments.
The Australian Government will be announcing more measures to prepare the nation for supply chain challenges over the coming days and weeks.
TATOLI
