The Federal Government will halve the fuel excise on petrol and diesel for three months, reducing prices by 26.3 cents per litre.
The measure, which was made following a national cabinet meeting convened by the prime minister, will run from 1 April to 30 June, and is expected to cut nearly $19 from the cost of filling a 65-litre tank.
The government said the change was aimed at easing financial pressure caused by rising global fuel prices linked to the war in the Middle East.
“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 the government in a joint statement.
In a parallel move, the heavy vehicle road user charge will be reduced to zero for the same three-month period.
The government will also defer the next scheduled increase in the charge by six months.
Australians have been encouraged to use public transport where possible “to help conserve fuel for the regions”, with the government welcoming existing efforts to lower public transport costs.
The consumer watchdog will continue monitoring fuel prices to ensure the reduced excise is passed on to consumers 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.”
Since the conflict began four weeks ago, the government said it had taken a series of measures, including doubling penalties for petrol companies engaging in price gouging, releasing 20 per cent of national fuel reserves targeted at regional areas, and introducing new fuel standards to increase supply.
Other actions include appointing a national fuel supply taskforce, increasing ACCC monitoring powers, securing international supply agreements, and introducing legislation aimed at ensuring fair pay for truck drivers during fuel price spikes.
Further measures to address supply chain challenges would be announced in the coming weeks.
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