Australian Prime Minister Anthony Albanese announced a series of measures on Monday to address rising petrol prices caused by the Middle East conflict, including a 50% cut to the fuel excise for three months. The move, agreed upon during a national cabinet meeting, will save motorists about $19 when filling a standard 65-litre tank.
Key Takeaways
Prime Minister Anthony Albanese announced a temporary 50% cut to fuel excise for three months amid rising petrol prices due to Middle East conflict. A four-stage National Fuel Security Plan was introduced to manage supply disruptions.
- Temporary 50% reduction in fuel excise for three months, saving motorists about $19 per tank
- Four-stage National Fuel Security Plan implemented; Australia at level 2 encouraging conservative fuel use and public transport
- Measures costing $2.55 billion, with additional $53 million from deferring heavy vehicle road user charge increase
- Government to underwrite extra fuel imports to ensure stable supply
- Albanese warns of tough times ahead but urges calm and normalcy
The government also introduced a four-stage National Fuel Security Plan, designed to manage supply disruptions and prioritize fuel distribution to critical industries and regions. Australia is currently at level 2, where motorists are encouraged to buy only the fuel they need and use public transport where possible.
The measures will cost the budget $2.55 billion, with an additional $53 million in foregone revenue from deferring a scheduled increase in the heavy vehicle road user charge for six months. The government also plans to use new powers to underwrite the purchase of additional fuel imports, mitigating financial risks for private importers and ensuring stable supply.
Energy Minister Chris Bowen expressed confidence in Australia's fuel supply outlook but warned that the situation could worsen if the conflict persists. The government has ruled out immediate fuel rationing but has not dismissed the possibility if supply issues escalate.
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