Australia to End Fuel Excise Relief After June

The Australian government will end a temporary fuel excise reduction at the end of June, potentially pushing unleaded petrol prices above $2.15 per litre. Anthony Albanese and his ministers confirmed that the 26.3 cent federal excise cut, combined with a 6 cent state GST reduction, is intended as a temporary cost-of-living measure following price spikes caused by a war between the United States, Israel, and Iran that began on February 28.

To mitigate energy insecurity caused by the closure of the Strait of Hormuz, the government allocated $3.2 billion for a new fuel reserve and secured 150 million litres of jet fuel and diesel from China. Prime Minister Albanese reported that petrol reserves have increased to 43 days, an increase of five days since the start of the conflict, and stated that supply remains secure into July.

Market volatility persists despite reports that the United States and Iran are nearing a peace deal to reopen the Strait of Hormuz. While Brent crude prices dipped on the news, analysts warn that damaged infrastructure could cause oil shortages through 2027. The National Roads and Motorists Association cautioned that reinstating the full excise could drive costs higher if a swift resolution to the Middle East conflict is not reached.