Australia extends fuel tax cut as discount is halved

The Australian federal government announced that the temporary fuel excise discount will be extended for a further month, but the benefit will be reduced from 32 cents to 16 cents per litre for both petrol and diesel. Prime Minister Anthony Albanese said the measure will continue from 1 July to 2 August to provide ongoing cost‑of‑living support, while Treasurer Jim Chalmers noted the extension will cost about $400 million. Drivers can expect the price of a 65‑litre tank to rise by roughly $11 compared with the previous discount.

The heavy‑vehicle road user charge will also be cut by 16 cents per litre in July before the full charge returns. The government framed the staged tapering as a way to avoid a fuel‑supply rush and to manage demand at service stations. The policy follows a period of higher fuel prices triggered by the Middle‑East conflict and the closure of the Strait of Hormuz, during which the original 32‑cent cut was introduced in April.