Commonwealth to slash fuel excise in half to bring down transport costs

Giovanni Torre
Giovanni Torre Published March 30, 2026 at 5.00pm (AWST)

The federal government has cut the fuel excise in half for three months in a move which should save motorists 26 cents a litre, delivering some relief to remote and regional communities that have been hit particularly hard by the fuel crisis.

The government has also encouraged the use of public transport, supporting a call from state and territory administrations - some of whom have made public transport free in response to spiking petrol costs.

Remote, predominantly Indigenous communities have struggled with sky-high fuel prices, which have had knock on effects on the cost of essential goods and services and the ability of tradespeople and other key workers to travel long distances to attend to such communities.

State and federal leaders gathered on Monday and also agreed to reduce the heavy vehicle road user charge to zero for three months, in a bid to support truck drivers.

A four-stage national fuel security plan flagged the potential for state and territory "practical measures to reduce fuel demand".

Prime Minister Anthony Albanese said the federal government would soon announce more steps regarding "supply chain challenges".

Also on Monday, National Indigenous Times reported Indigenous people in remote communities could only drive sick family members part of the journey to get medical care and were forced to rely on ambulances because they could not afford the entire round trip.

The fuel crisis was sparked when the United States and Israel, in the midst of US-Iran "negotiations", launched a series of attacks on Iran on February 28. The Iranian government responded with counter-attacks and other measures that have curtailed the production and transport of oil in the region.

The fuel excise cut will come into force from Wednesday 1 April, and run until 30 June.

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National Indigenous Times

Disclaimer: This function is AI-generated and therefore may mispronounce.