SYDNEY: Australia will temporarily halve its fuel excise as rising energy prices linked to the Middle East conflict drive up costs, Prime Minister Anthony Albanese announced on Monday (March 30).
The measure, initially set for three months, is expected to cut petrol and diesel prices by about A$0.26 (US$0.17 US) per litre. The government will also reduce the road user charge for heavy vehicles to zero during the period.
Australian Treasurer Jim Chalmers said the package would cost around $2.55 billion and aims to ease pressure on households and businesses.
In parallel, the government and states agreed on a national fuel security plan, outlining escalation steps ranging from planning to targeted interventions and safeguarding critical services and infrastructure.
Chalmers said the Middle East conflict was weighing heavily on the global economy, fuelling higher prices and demand for fuel. The government aims to cushion consumers and maintain economic stability, with rural communities expected to benefit most due to reliance on cars.
Albanese also urged people not to cancel planned trips over the Easter holidays.
Australia is considered vulnerable to global supply disruptions as it imports most of its fuel and holds relatively limited strategic reserves. Disruptions to key trade routes, including the Strait of Hormuz, can quickly affect prices and supply.
The government recently also said it would temporarily relax fuel quality standards, allowing higher-sulphur fuels to be sold. - dpa
