Australia Cuts Fuel Tax in Half to Curb Price Surge

The Australian government will temporarily halve the fuel excise tax to address price increases resulting from the conflict in the Middle East, said Australian Prime Minister Anthony Albanese on Monday.

“We will reduce the fuel excise tax by half for three months so you can save when filling up,” Albanese said on social media.

The policy is expected to lower fuel prices in Australia by around 26.3 Australian dollars (approximately Rp2,700) per litre for three months starting Wednesday, 1 April 2026, with a budget burden of about 2.55 billion Australian dollars (approximately Rp42.5 trillion).

In addition, Australia will also readjust road user charges for heavy trucks during the same period to alleviate pressure on the transport and logistics sectors.

“We are making fuel prices cheaper right now because we understand that Australian citizens are under serious pressure,” said Prime Minister Albanese.

The Australian government stated that it has now entered the second stage of the plan, namely by maintaining the smooth running of economic activities. However, Australia still has sufficient time before moving to stricter policy measures, such as restrictions on fuel distribution.

At the end of February, the United States and Israel launched attacks on targets in Iran, including in Tehran, causing damage and civilian casualties. Iran then retaliated by attacking Israeli territory and US military facilities in the Middle East.

The escalation of this conflict has triggered a de facto blockade in the Strait of Hormuz, which is the main shipping route for oil and liquefied natural gas from the Gulf region to global markets. The blockade in the Strait of Hormuz has impacted supplies and driven up fuel prices in various countries.