Government cuts fuel excise to ease energy costs

  • Posted by David Sexton
  • |
  • 30 March, 2026

FUEL excise (petrol and diesel) has been halved for three months and heavy vehicle user charges cut as the Australian government seeks to ease pressure on the transport sector.

“Today, we are announcing the Commonwealth Government will halve the fuel excise on petrol and diesel for three months,” Prime Minister Anthony Albanese told media.

“The halving of the fuel excise will reduce the cost of fuel by 26.3 cents per litre.”

Treasurer Jim Chalmers told media the fuel excise cuts would reduce the cost of filling a tank by about $19.

“We will also be foregoing the heavy vehicle road user charge, and we will be cutting the heavy vehicle road user charge to zero,” Mr Chalmers said.

Infrastructure minister Catherine King said the Australian Competition and Consumer Commission (ACCC) would continue to monitor fuel prices to help ensure the lower excise rate was fully passed on at the bowser.

“While Australia’s fuel supply outlook remains secure in the near term, the longer this war goes the worse the impacts will be,” Ms King said.

“We are acting now to prepare and shield Australians.”

In other fuel news, Ports Australia has emphasised the need to formally recognise ports and maritime operators as ‘Tier 1’ fuel priorities, warning Australia cannot maintain the flow of essential goods without assured access to fuel.

“This is a rapidly evolving situation, and conditions are shifting by the day. What isn’t changing is the central role ports play as the first and last link in some of our most critical supply chains,” said chief executive Mike Gallacher.

While Ports Australia said it supported efforts being made to keep trucks and downstream logistics moving, these steps would fall short if the flow of goods stopped at the ports.

“It’s no use keeping trucks on the road if containers and essential goods aren’t coming off ships in the first place. Port operators must be recognised as the frontline,” Mr Gallacher said.

 

Government cuts fuel excise to ease energy costs
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Posted by David Sexton

David Sexton is DCN’s senior journalist and has an extensive career across online and print media. A former DCN editor, he returns to covering shipping and logistics after a four-year hiatus working at Monash University during which time he managed production of key reports into the Indonesian ports and rail sectors.

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