Australians will pay 26.3 cents less per litre for petrol and diesel after national cabinet agreed to halve the fuel excise for three months.
Prime Minister Anthony Albanese announced the measure on Monday, with the heavy-vehicle charge also reduced to zero for the same period.
The package will cost the federal budget about $2.55 billion.
“We’re making fuel cheaper today because we understand that Australians are under serious pressure,” he said.
The move comes alongside a four-stage national fuel security plan, developed in response to the growing impact of the Middle East conflict on global energy markets.
Australia has been placed at the second level – “Keeping Australia moving” – with stronger measures available if conditions deteriorate.
A fuel supply taskforce, led by coordinator Anthea Harris, will meet twice weekly to monitor supply chains.
Premier Jeremy Rockliff said the cut would ease pressure on households, particularly in regional areas.
“For many Tasmanians, especially those in regional areas who rely heavily on their vehicles, fuel costs are a significant part of weekly household expenses,” he said.
“Any reduction at the bowser will help ease pressure on family budgets and on businesses trying to manage higher operating costs.”
Rockliff said he had been urging the federal government to act and welcomed the cooperation between states and Canberra.
“I appreciate the prime minister listening to the concerns raised by Tasmania and other states and taking decisive action,” he said.
The decision mirrors the Morrison government’s temporary halving of the excise in 2022, when fuel prices spiked following Russia’s invasion of Ukraine.
