Albanese Government cuts petrol excise by 26c to drop fuel prices for three months

Petrol will be 26 cents-a-litre cheaper from Wednesday with a temporary cut to fuel excise as the Prime Minister urges Australians to “enjoy their Easter” and keep the economy ticking over amid the fuel crisis.

National cabinet has agreed to a four-stage fuel security plan but its language is vague about when rationing might become mandatory and what the triggers are to shift between levels.

The Federal Government decided to halve fuel excise to 26 cents per litre for three months starting on April 1, while the States have agreed to consider how to ease the GST burden.

It will also temporarily reduce the heavy vehicle road user charge to zero for the same three-months and delay a regular increase in the charge, with potential registration relief to come from the States.

The measures will cost the budget $2.6 billion.

Under the new fuel security plan, the country is currently at level 2, dubbed “keeping Australia moving”.

Prime Minister Anthony Albanese said leaders would decide if or when a shift from the current status was required.

National Cabinet will make that decisions based on the description that there are “ongoing supply disruptions (that) mean we will focus on getting fuel to where it’s needed most and adopt voluntary practical measures to limit fuel use”.

“We are substantially away from that because of the supply issues. What we know is that every single ship that was due to come here up to this point … has arrived,” he said.

“We know in April of the 81 ships that were due, six haven’t come, but they’ve been more than replaced. There are nine in addition. So there’s more fuel arrived than was anticipated.”

Under the plan, Australians are urged now to buy only the fuel they need, and make “voluntary choices” to use less fuel and avoid the impact of higher prices.

At level 3, governments will work together to “implement a national approach for practical measures to reduce fuel demand”.

“All Australians are in this together, and we will need to play our part to help fuel get to where it’s needed most,” it states.

The highest stage, dubbed “Protecting critical services for all Australians”, envisages governments actively directing fuel supplies and offering targeted public transport to help move key workforces and the people most in need.

However, the plan also notes that “level 3 and 4 are under consideration and may change, depending on circumstances”.

WA Premier Roger Cook said level four was the space where the national cabinet would look at mandating consumption or distribution, “but we’re a long way from that. We want to continue to work with the community and with the industry to make sure that we get through this issue together.”

What are the changes that the Federal Government announced to help with petrol prices?

• Halving of fuel excise to 26 cents per litre
• Heavy vehicle road user charge reduced to zero for three months
• Next scheduled increase in heavy vehicle road user charge deferred by six months
• National Cabinet to review and change Australia’s four-stage fuel security plan where necessary