Australia has announced a temporary reduction in fuel tax, slashing it by half in response to rising global energy costs linked to ongoing tensions in the Middle East.
The move is aimed at easing financial pressure on households as fuel prices continue to climb domestically.
“We’re halving the fuel tax for three months to save you money when you fill up,” Prime Minister Anthony Albanese said in a post on US social media company X.
According to the prime minister, the conflict in the Middle East has had a direct impact on local fuel costs, intensifying cost-of-living challenges for many Australians. “is pushing up prices at home. And we know Australians are feeling the pressure.”
The government says the tax cut will remain in place until June 30, lowering the cost of petrol and diesel nationwide. Additional measures are also being introduced to address unfair pricing practices in the fuel market. “So we’re making every litre of petrol and diesel cheaper through to June 30. We’re also cracking down on petrol price gouging with huge fines,” Albanese said, warning of “uncertain” things around the world.
The decision comes as the US-Israeli war with Iran enters its second month, continuing to disrupt global oil supply chains. In response, Australia has already begun releasing oil from its strategic reserves and has taken the rare step of securing emergency fuel supplies from the United States for the first time in decades.
Meanwhile, state governments are taking supplementary action to support residents. On Sunday, both Victoria and Tasmania introduced free public transport services as part of efforts to cushion the impact of soaring living costs.
