Fuel Prices Rise, Australia Cuts Fuel Tax

The Australian government will temporarily halve the fuel excise tax to address the price increases resulting from the conflict in the Middle East. This was stated by Prime Minister Anthony Albanese on Monday (30/3). “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 cents (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 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 Australians are under serious pressure,” said Prime Minister Albanese. The decision was made after a National Cabinet meeting with state and territory leaders, who agreed on four points of Australia’s National Fuel Security Plan. The Australian government stated that it is now entering the second stage of the plan, which is to maintain smooth economic activity. However, Australia still has sufficient time before moving to stricter policy measures, such as fuel distribution restrictions. 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, 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. Australia is facing a severe fuel crisis due to the Middle East conflict. More than 500 petrol stations are dry, residents are panic buying, and diesel prices have surged sharply. The surge in demand triggered by panic buying has disrupted distribution.