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Government Extends Fuel Excise Cut for One Month at Half the Rate

Officials say the shorter, smaller rebate is meant to curb fiscal cost, reassure supply and calm demand at service stations.

Overview

  • The Albanese government confirmed on Saturday that the temporary fuel excise discount will continue from July 1 to August 2 but is reduced from 32¢ a litre to 16¢ a litre and the Heavy Vehicle Road User Charge will be reinstated at 16¢ a litre.
  • The one‑month taper is estimated to cost about $400 million in foregone revenue compared with the earlier three‑month 32¢ cut that cost roughly $2.5–$2.9 billion.
  • Energy Minister Chris Bowen says Australia has robust supplies with about 44 days of petrol, 39 days of diesel and 32 days of jet fuel and that 51 tankers carrying a contracted 3.9 billion litres are en route.
  • The government and Treasurer Jim Chalmers framed the move as a managed wind‑down to avoid another wave of panic buying and announced the ACCC will keep monitoring wholesale discounts to ensure motorists see the saving at the bowser.
  • Officials noted recent falls in oil prices after a US–Iran agreement but warned uncertainty over the Strait of Hormuz and lingering supply disruption could persist for months and influence future decisions.