The Australian federal government has halved the fuel excise on petrol and diesel for three months, effective April 1, reducing the cost of fuel by 26.3 cents per litre.
For the average Australia household, this reduction will slash the cost of filling a standard 65-litre tank by nearly $19.
Further, the government is reducing the heavy vehicle road user charge to zero for the next three months. A scheduled increase to the charge has been deferred by six months.
These measures are designed to support the transport industry as it navigates the unprecedented shock to global oil and gas supplies.
“We’re making fuel cheaper today because we understand that Australians are under serious pressure,” according to Prime Minister Anthony Albanese.
To ensure the excise cut reaches consumers, the Australian Competition and Consumer Commission (ACCC) has been tasked with ramping up monitoring and issuing on-the-spot fines for price gouging.
New laws have already doubled penalties for petrol companies found to be taking advantage of the crisis. While the government maintains that Australia’s near-term fuel supply remains secure, citizens are being encouraged to use public transport where possible.
This voluntary action is aimed at conserving fuel stocks for regional areas and essential industries that rely heavily on diesel.
The government has already released 20 per cent of national fuel reserves and secured a supply agreement with Singapore to keep the economy moving. Further measures to bolster sovereign energy resilience are expected to be announced in the coming weeks as the global outlook remains unpredictable.
National leaders have also ratified a National Fuel Security Plan, a four-tiered framework designed to coordinate the response between the Commonwealth, States, and Territories.
Australia is currently at level two of the escalation plan, ‘Keeping Australia Moving’, where fuel supply continues to operate effectively but localised supply disruptions occur.
Level three is taking targeted action, where the government will take practical measures to limit fuel use.
Level four is protecting critical services, where ongoing supply disruptions require government action to ensure critical users are protected, and the economy remains open and operating.
The prime minister said Australia is ‘substantially away’ from implementing level three of the fuel plan as supply shipments are still arriving. Chris Bowen, Minister for Climate Change and Energy, said the government is confident in fuel supplies through until May.