Australia Fuel Discounts End as Middle East Peace Talks Progress

Australian Treasurer Jim Chalmers announced that a total fuel discount of 32¢ per litre—comprising a 26¢ federal excise reduction and a 6¢ state GST cut—will expire at the end of June. The removal of these measures is expected to push unleaded petrol prices above $2.15 and diesel beyond $2.60 per litre. Chalmers stated the government does not anticipate extending the relief, which was implemented as a temporary cost-of-living measure following the start of a conflict on February 28.

Price volatility remains tied to the war involving the United States, Israel, and Iran, which led to the blockade of the Strait of Hormuz and disrupted 20% of global oil supply. While Brent crude fell 6% to roughly $US97 a barrel following reports that the U.S. and Iran are nearing a peace deal to reopen the strait, analysts warn that infrastructure damage could cause shortages through 2027.

Prime Minister Anthony Albanese reported that national fuel stockpiles have increased to 43 days of petrol and 38 days of diesel, asserting that supply remains secure into July. However, the National Roads and Motorists Association warned that fuel costs remain volatile and emphasized the need for the conflict to end before the excise relief expires in June.