ALBANESE WEIGHS FUEL EXCISE CUT EXTENSION AS STATES ACT

Albanese commits to pre-July 1 decision

Prime Minister Anthony Albanese has confirmed the government will decide before July 1 whether to extend the three-month fuel excise cut, introduced in April to counter price spikes from the US-led war on Iran.

The measure, reducing petrol and diesel costs by 26.3 cents a litre, is costing $2.55 billion in lost revenue.

While the budget prioritised long-term fuel security, it offered no commitment to prolong the excise cut, leaving motorists facing a potential sharp price jump.

What the decision means for motorists and the economy

If the cut expires, motorists could see fuel prices rise by 20–30 cents a litre, compounding cost-of-living pressures already driven by the Middle East conflict.

Experts warn the lapse could undermine household budgets despite other tax relief measures in the budget.

The government argues its $15 billion fuel security package, including a $3.2 billion national reserve, will build resilience, but immediate price relief hinges on the excise decision.

States move to secure fuel supplies

NSW has fast-tracked approvals for more than $100 million in fuel infrastructure projects, including refineries, production expansion, and EV truck charging stations.

SA has struck a deal to store 10 million litres of diesel, while Queensland has extended BP’s lease to add 54 million litres of storage.

These moves reflect a shared view that Australia’s reliance on foreign oil leaves it exposed to future crises.

From war in Iran to the bowser

The Iran conflict has effectively closed the Strait of Hormuz, a route for 20% of global oil and gas, cutting flows by about 4 million barrels per day.

Brent crude rose 5.5% last week to US$107 per barrel, driving ASX 200 energy shares higher even as the broader market fell.

Analysts warn the market could remain undersupplied through October even if the conflict ends soon, sustaining upward pressure on fuel prices in Australia.

View article source here.