Australia Has Announced It Will Halve Its Fuel Taxes For Three Months Due To The War On Iran
Prime minister Anthony Albanese said the government was "making fuel cheaper today because we understand that Australians are under serious pressure."
Australia has halved its federal fuel excise tax on petrol and diesel for three months in response to sharply rising fuel prices driven by the US‑Israel’s ongoing war on Iran.
Australia is a major exporter of coal and gas, but imports about 90% of its fuel and has around one month of petrol, diesel and jet fuel in reserve.
Average petrol prices in Australia's five largest cities jumped 18 cents per liter in a single week as a result of the war.
The excise tax on petrol and diesel is being reduced by AU$0.263 (US$0.18)per liter, which the government estimates will save motorists around AU$19 (about US$13) per 65‑liter tank.
The measure is set to run from early April through the end of June 2026 and is expected to cost Australia roughly AU$2.55 billion over the period.
The government is also suspending the Heavy Vehicle Road User Charge, a diesel‑based charge on trucks and buses, for the same three‑month period, to help keep freight and transport costs lower.
The move is part of a broader four-stage national fuel security framework to shield consumers and businesses from the global energy‑price spike.
Australia is currently at stage two, where supply is still flowing but with localized disruptions.
Stages three and four could eventually involve fuel rationing and prioritizing emergency services and freight.
Prime minister Anthony Albanese said the government was "making fuel cheaper today because we understand that Australians are under serious pressure."
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Cherry Mohamed
Flavie Chen
Cherry Mohamed
