Australia Slashes Fuel Tax to Combat "Record" Price Surge from Iran War

PM Anthony Albanese announces a 26.3 cent fuel tax cut and a A$2.55 billion relief package as the Iran war chokes global oil supplies and drives prices to record highs.

By: AXL Media

Published: Mar 30, 2026, 5:34 AM EDT

Source: Reuters

Key Relief Measures

The three-month emergency plan includes:

Fuel Excise Cut: A reduction of 26.3 Australian cents per litre for petrol and diesel.

Road User Charge: Temporary removal of the heavy road user charge to support the freight and logistics industry.

Spot Cargo Underwriting: The government will use Export Finance Australia to underwrite the purchase of expensive spot fuel cargoes, ensuring smaller industry players can secure supply despite prohibitive commercial costs.

The Global Context: The Strait of Hormuz Crisis