Australia to halve fuel consumption tax for a period of 3 months

Australian Prime Minister Albanese stated on Monday that the government will halve the petrol and diesel taxes and waive road usage fees for heavy vehicles for three months to help families cope with rising costs caused by the war in Iran. These measures are expected to cost AUD 2.55 billion (approximately HKD 13.7 billion).

Albanese said at a press conference, “We are well aware that the public is facing real cost pressures, and this war happening on the other side of the world is directly reflected here.” He mentioned that after the fuel excise tax is halved, the cost of fuel per liter is expected to decrease by 26.3 Australian cents (approximately HKD 1.41).

According to a report from the Australian Petroleum Production and Exploration Association on Sunday, the national average retail price for diesel last week has exceeded AUD 3 per liter (HKD 16.13), while petrol reached AUD 2.5 (HKD 13.44). The government has also confirmed that it has implemented a national fuel security plan, with all state governments agreeing to cooperate in transporting fuel to areas with the most urgent demand; the response actions are divided into four levels, with Australia currently at level two, aiming to maintain national operations; the highest level ensures that critical public services are maintained.

Albanese emphasized that while Australia’s fuel supply remains secure in the short term, it is necessary to clearly communicate to the public that the longer the war lasts, the more severe the impact will be.

Currently, Australia’s fuel reserves are at a 15-year high, but still far below the 90-day reserve recommended by the International Energy Agency (IEA). According to official data from last week, Australia’s current reserves of diesel and aviation fuel can last for 30 days, while petrol can last for 39 days.