Anthony Albanese has announced a temporary cut in fuel tax to help Australians deal with rising petrol prices caused by ongoing tensions in the Middle East.
Under the plan, the government will halve the fuel excise for three months. This tax is normally 52 cents per litre, so the reduction will significantly lower the cost of petrol at the pump.
The move is expected to cost the government about $1.75 billion (A$2.55 billion).
Albanese said the decision was made to ease pressure on households as fuel prices continue to rise. He added that supply issues are being driven not only by global conflict but also by panic buying and distribution problems in some areas.
At the same time, some Australian states are taking additional steps. Victoria and Tasmania have made public transport free in certain cases to reduce pressure on fuel demand.
In New South Wales, authorities reported that several petrol stations have run out of fuel, especially in rural regions. Officials say efforts are now focused on stabilizing supply in those areas.
State leaders warned that further action may be taken if conditions worsen.
To support supply chains, the federal government is also introducing new powers to help secure fuel imports and ensure shipments keep arriving regularly.
Despite concerns, officials say Australia still has around 39 days of petrol reserves and about 30 days of diesel supply.
Fuel prices have risen sharply in recent weeks, with average petrol prices in New South Wales jumping from around A$1.82 to A$2.48 per litre.
In short, the government is stepping in with tax cuts and emergency measures to stabilize fuel prices and prevent shortages, especially in regional areas.
