Australia Extends Fuel Excise Cut Through July, Halves Discount

Prime Minister Anthony Albanese announced that the temporary fuel excise relief will be extended for an additional month, running from 1 July to 2 August. The discount will be reduced to 16 cents per litre for both petrol and diesel, half the 32‑cent cut that has been in place since April.

The Heavy Vehicle Road User Charge will also be cut by 16 cents per litre for July. The government estimates the combined measures will cost about $400 million in forgone revenue. Treasury officials said the earlier 32‑cent cut had already cost around $2.9 billion.

The extension is intended to ease cost‑of‑living pressure while oil prices stabilize after a cease‑fire agreement between the United States and Iran. Australia holds roughly 44 days of petrol and 39 days of diesel in reserve, with 51 tankers carrying about 3.9 billion litres en route.

Industry groups welcomed the move. Tourism & Transport Forum CEO Margy Osmond said the relief supports regional tourism during the winter school‑holiday period, while the Australian Chamber of Commerce noted it gives short‑term certainty for freight operators. Opposition figures described the step‑down as a sensible, pragmatic response to the still‑volatile global fuel market.