Australia’s fuel excise will be slashed in half for the next three months, as Prime Minister Anthony Albanese unveiled a national fuel security plan aimed at easing cost-of-living pressures and safeguarding supply.
The temporary cut, announced after a National Cabinet meeting with state and territory leaders on Monday, is expected to reduce petrol prices by about 26 cents per litre.
Albanese said the measure was designed to provide immediate relief for households and businesses grappling with rising fuel costs, while also ensuring supplies could be prioritised for those most in need.
“We understand that Australians are under serious pressure,” he said.
However, the Prime Minister urged city drivers to limit unnecessary fuel use, warning that conserving supply would help ensure regional and essential services are not disrupted.
“The less fuel we use in the cities, the more we can send to the people that need it,” he said.
In addition to the excise cut, National Cabinet agreed to scrap the heavy road usage charge for three months, a move aimed at reducing operating costs for transport operators – particularly small trucking businesses. A planned increase to the charge has also been deferred.
The measures form part of a broader national fuel security plan, which was endorsed by all states and territories during the meeting.
The four-step framework includes planning and preparation, maintaining essential transport, targeted interventions, and protecting critical services across the country. Further details are expected to be released in the coming days.
Albanese emphasised the importance of a unified national response, warning that global instability could continue to drive fuel market volatility.
“One of the things that we want to ensure is that there’s one plan, not nine,” he said.
“The longer this war goes on, the worse the impacts will be.
“We need to be very clear as well with Australians about what this could mean and how we are preparing to shield them from the worst effects.”
Image: 7News
