The federal government will slash the fuel excise for the next three months amid soaring petrol and diesel prices and concerns that the Middle East conflict will drag on longer than expected.
The move comes following a meeting of National Cabinet this morning.
The excise will be halved to 26.3 cents a litre, saving motorists an average of $19 a tank.
Truckies will be given further relief with the government announcing it would reduce the heavy vehicle road user charge to zero for three months.
The next increase in the charge will also be delayed.
The measures are expected to cost the federal budget more than $2.5 billion.
“We’re making fuel cheaper today because we understand that Australians are under serious pressure,” Prime Minister Anthony Albanese said.
“However, we really also want to encourage Australians who can to take public transport to help save fuel for the areas and industries that need it.
“The less fuel we use in the cities, obviously, the more we can direct to regional areas that are under pressure.”
Leaders also agreed to a four-point action plan should the fuel crisis worsen.
The plan would see the government take targeted action if supplies dwindle further, before then moving to protect critical services should it be needed.
“One of the things that we want to ensure is that it is one plan, not nine, across eight state and territory jurisdictions and from the Commonwealth,” Albanese said
“The plan outlines how governments will work together to keep Australia open and to keep our economy going.
“Early, voluntary action, coupled with new supply measures, will make a difference and make sure that fuel continues to get to those who need it most.”
More to come
