Australia will reduce its fuel tax by 50 percent to alleviate the burden on motorists facing soaring petrol prices linked to the ongoing war in the Middle East, Prime Minister Anthony Albanese announced on Monday. This decision followed a meeting with leaders from the states and territories, where they agreed on a strategy to address fuel shortages as the conflict continues to affect supply chains.
Currently, Australia imposes a sales tax of 52 cents per litre of petrol sold at the pump. Under the new plan, this tax will be halved for a period of three months. The government estimates that this relief measure will cost approximately $1.75 billion (Aus$2.55 billion).
Prime Minister Albanese emphasized the government’s commitment to easing financial pressure on Australians, stating, “We are making fuel cheaper today because we understand that Australians are under serious pressure.” The government has also reassured the public that fuel shipments are still arriving in the country, attributing shortages in rural areas primarily to panic buying and distribution challenges.
In response to the crisis, the states of Victoria and Tasmania have introduced free public transport to reduce fuel consumption. Albanese encouraged motorists nationwide to limit their petrol use by driving less, noting, “The less fuel we use in the cities obviously the more we can redirect to regional areas that are under pressure.”
New South Wales Premier Chris Minns reported that many petrol stations in his state are currently out of fuel, with efforts focused on supporting rural communities. He warned that additional measures could be implemented if the situation deteriorates further.
In a significant development, Australia’s national parliament introduced legislation on Monday to empower the government to underwrite the purchase of large shipments of fuel, aiming to bolster domestic supply. Recent weekly data indicates that Australia holds 39 days’ worth of petrol stocks, a slight increase from the previous week, and 30 days’ worth of diesel.
Additionally, the government plans to reduce expenses for truck operators by lowering the heavy vehicle road user charge. the Fuel Check monitor, average petrol prices in New South Wales have surged from Aus$1.82 per litre in February to Aus$2.48 on Monday, while diesel prices have climbed to Aus$3 per litre.
