Australia to Halve Fuel Tax for Three Months

March 30, 2026

Canberra: Australian Prime Minister Anthony Albanese on Monday announced that the government will halve its tax on fuel sales to ease the burden of record-high prices. The fuel excise cut will come into effect from Wednesday and remain in place for three months.

Relief Amid Rising Fuel Prices
The move is expected to reduce the cost of petrol and diesel by 26.3 cents per litre. The decision comes as fuel prices surge due to the ongoing Middle East conflict and oil crisis.

According to the Australian Institute of Petroleum, the national average price for regular unleaded fuel reached a record 2.53 Australian dollars per litre, while diesel prices rose to 3.1 Australian dollars per litre.

Support for Trucking Sector
In addition to the fuel tax cut, the government announced that the road user charge on diesel used by heavy vehicles will be reduced to zero for three months. This measure aims to provide relief to the trucking industry.

Treasurer Jim Chalmers said the combined measures would cost the government about 2.55 billion Australian dollars in lost revenue.

Focus on Economic Relief and Fuel Security
The Prime Minister said the government understands the financial pressure on citizens and is taking responsible steps to provide relief. He also noted that state and territory leaders have agreed on a national plan to strengthen fuel security across the country.