Government to halve fuel excise for 3 months

The Albanese government has unveiled a National Fuel Security Plan to deal with the unprecedented shocks to global and gas supplies, alongside cuts to the fuel excise and the Heavy Vehicle Road User Charge.

Following a meeting of the National Cabinet, Prime Minister Anthony Albanese announced the government will have the fuel excise from 1 April to 30 June.

The government will also reduce the Heavy Vehicle Road User Charge to zero for three months and defer the next scheduled increase by six months.

The changes to the fuel excise and the heavy vehicle road user charge are estimated to cost around $2.55 billion but are expected to reduce headline inflation by half a percentage point for the 2025-26 income year.

It has also released a National Fuel Security Plan, which sets out a co-ordinated response to the fuel crisis across the Commonwealth, states and territories.

Speaking at a press conference on Monday, the prime minister said the plan is designed to keep the community and business updated and provide an early understanding of further fuel security measures that may be required.

"Voluntary action, together with new supply measures, can reduce the need for stronger measures," he said.

"Our approach is determined by four levels of action. One, plan and prepare. Two, keeping Australia moving, which is where we are at the moment. Three, taking targeted action, and four, protecting critical services for all Australians. We do this in in order to be completely transparent about not just where we are, but where this might go in the future."

The government said that since the beginning of the conflict, it has also passed new laws to double the penalties for price gouging by petrol companies, released petrol and diesel fuel reserves and tasked the ACCC with fuel price monitoring and issuing on-the-spot fines. It has also introduced legislation to underwrite the private sector's fuel purchases.

Albanese warned that while Australia’s fuel supply outlook remains secure in the near term, the longer the war goes, the worse the impacts will be.

"We understand the cost pressures for people are very real as the impact of the war on the other side of the world plays out here," he said.

"We're acting now to be over prepared, to prepare and to shield Australians from the worst of the impacts."

The government said it would be announcing further measures to to prepare the nation for supply chain challenges over coming days and weeks.