Australia extends fuel excise cut and halves discount to 16c per litre

The Australian government will extend a temporary cut to the fuel excise for another month, but will halve the rate of relief starting in July. Prime Minister Anthony Albanese announced the policy on Sunday, June 21, 2026, describing it as a sensible step to provide certainty to motorists while managing the budget impact.

Under the new arrangement, the excise discount will be reduced from 32 cents per litre to 16 cents per litre for both petrol and diesel from July 1 until August 2. The government estimates this will save a typical motorist about $11 per tank. The Heavy Vehicle Road User Charge will also be reduced by 16 cents per litre for the same period, with the combined measures expected to cost the federal budget approximately $400 million.

Albanese said the tapered reduction was designed to avoid a sudden rush of motorists filling up before the support ended and to help manage demand at service stations. He acknowledged that while global oil prices have fallen recently, the economic impact of the conflict in the Middle East would have a long tail. The government had initially halved the fuel excise in March after prices surged following the outbreak of hostilities and a...