MELBOURNE, March 31 2026: The National Cabinet after a meeting on March 30, 2026, decided to cut the fuel excise by 50 percent on Petrol and Diesel. The halving of the fuel excise will cut the cost of fuel by 28.3 cents per litre, reducing the cost of a 65L fuel tank by nearly $ 19. The fuel excise cut will commence from 1 April, 2026.
The fuel prices surge as a consequence of the US-Israel attack on Iran and the subsequent closure of the Strait of Hormuz by Iran has seen big spike at the pumps. Fuel prices in Sydney and Melbourne are currently high due to recent wholesale surges and price cycles, with unleaded petrol averaging around 258 cents per litre in both cities.
The Guardian says, ” Flow-on effect will depend on how quickly service stations sell more expensive fuel, experts warn, leaving Easter travel plans up in the air.”
” If governments want to help households through an oil shock, support should be targeted and fiscally sustainable. The aim should be to direct help to the people under the greatest pressure, rather than simply subsidising all fuel users.
In the near term, that points to more targeted responses, such as direct payments to vulnerable, low-income households and support for essential fuel-using activities.
To fund that relief, a temporary tax on the windfall profits earned by the largely foreign-owned gas exporters from the energy shock is worth considering. Alongside these policies, the excise cut would reconcile public demands for action within a sound and broader economic policy package, ” writes The Conversation, 30 March, 2026.
Latest IMF blog says, ” If elevated energy and food prices persist, they will fuel inflation worldwide. Historically, sustained oil‑price spikes have tended to push inflation higher and growth lower. Over time, higher transport and input costs work their way into the prices of manufactured goods and services. For many countries that had only just brought inflation closer to target, and even more so those with stickier inflation, this risks a renewed period of uncomfortable price pressures.”
In a combined media statement emailed from the PM’s office to SAT on March 30, 2026, PM Anthony Albanese MP, Treasurer Jim Chalmers MP and Infrastructure Minister Catherine King MP said, ” 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.
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.”
