Fuel excise halved for three months

Following a meeting of the National Cabinet today convened by the Prime Minister, the Australian Government will halve the fuel excise on petrol and diesel for three months.

The halving of the fuel excise will reduce the cost of fuel 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.

The halving of the fuel excise will commence from April 1 and run to 30 June.

Further, the Albanese Government will reduce the Heavy Vehicle Road User Charge to zero for three months to help truckies continue their vital work for our nation. The Government will also defer the next scheduled increase in the Heavy Vehicle Road User Charge 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) will 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.

Since the conflict commenced four weeks ago the Albanese Government has taken swift action on fuel. We have:

• 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(link is external).

The Prime Minister, the Minister for Foreign Affairs and Minister Bowen continue to engage key international counterparts to help ensure the continued flow of fuel and diesel shipments to Australia from our trade partners. We will continue to keep Australians updated on these discussions and developments.

The Australian Government will be announcing more measures to prepare the nation for supply chain challenges over coming days and weeks.