Extension on fuel excise relief kept in play by PM
Although the Prime Minister reported that liquid fuel supplies were healthier than before the start of the Iran war, the door was left ajar for an extension of the gas pump excise tax cut.
Anthony Albanese, who has been providing weekly updates on Australia’s fuel security situation since the conflict began disrupting oil supplies, did not rule out the possibility of extending the tax cut.
The federal government has halved excise duty per liter on bowser in a bid to lower prices for drivers in a temporary move that expires at the end of June.
“We will make an assessment by July 1,” Mr Albanese told reporters in Sydney on Saturday, as he introduced other tax cuts that could cushion the blow if the consumption tax cut expires at the start of the new financial year.
“Of course, on July 1, we had our first tax cut, one of five installments of tax cuts implemented by my government,” he said, referring to rejected income tax cuts and other relief packages announced.
Australia currently has 44 days worth of oil; That’s two days more than last week’s update and eight days more than the day the Iran bombing began.
The country has 36 days of diesel and 35 days of jet fuel.
The Prime Minister said Australia had more petrol, jet fuel and diesel than it did on February 28, when the US and Israel attacked Iran.
“We are in a better position than anyone anticipated when we gave our pre-Easter national speech,” he said.
Australia remains in level two of its fuel plan, which requires users to buy only what they need and take voluntary steps to use less.
The 2026 federal budget released on Tuesday included a multibillion-dollar fuel resilience package that includes a $7.5 billion fuel and fertilizer security facility and a $3.2 billion Australian fuel security reserve.
The package is designed to facilitate at least 50 days of onshore refueling and storage of diesel and aviation fuel.
Australia is also stepping up efforts to secure fuel supplies, and diesel cargoes were secured from three additional spot markets on Friday.
The federal opposition, led by Angus Taylor, is calling for a minimum stockpile requirement to meet the 90-day requirement under the international energy agreement and advocating for more domestic oil and gas mining.
