Fuel discount extension announced
The Albanese government will announce on Sunday a reduction in the federal fuel excise cut starting on July 1. The announcement was made by Mike Foley of The Sydney Morning Herald, who reported that petrol and diesel discounts would be extended for one month beyond the original deadline of June 30.
Discount rates to change
The discount currently in effect since April is set at 32 cents per litre. Starting July 1, this rate will reduce to 16 cents per litre according to reports from The Sydney Morning Herald and other outlets including Brisbane Times, Watoday, and The Age.
- Current excise discount: 32¢/litre (in effect since April)
- Scheduled July discount: 16¢/litre
Purpose of staged reduction
The government stated that the staged reduction in fuel excise discounts is designed to avoid another round of panic buying. Sources reported that motorists are expected to stock up on cheap fuel during the final weeks before price cuts end.
Heavy vehicle charge adjustment
The heavy vehicle road user charge, valued at 32 cents per litre and abolished for three months previously, is also scheduled to be reduced by 16 cents in July. This reduction applies alongside changes to the general fuel excise discount.
Panic buying context
Record demand for petrol and diesel following a war in the Middle East caused widespread panic buying. Sources reported that up to 600 service stations ran out of at least one type of fuel during this period. While Australia did not run short of fuel overall, supply chains buckled under pressure.
Prior excise reduction
A previous reduction in the excise was implemented as a response to record-high fuel prices in March and Iran's closure of the Strait of Hormuz on February 28. Sources state that this closure choked off about 15 per cent of global oil supply.