Motorists will benefit as a cut to fuel taxes is extended for another month, although at half the previous discount.
Prime Minister Anthony Albanese announced a scaled-back extension of the fuel excise reduction, meaning petrol and diesel will be 16 cents per litre cheaper in July than they would be without the discount.
The current saving at the bowser is 32 cents per litre, brought into effect three months earlier in response to the conflict in the Middle East, which sent global oil prices surging due to the de facto closure of key shipping channel the Strait of Hormuz.
The full discount will end after June 30, having cost the federal budget an estimated $2.9 billion in lost revenue.
Mr Albanese said gradually scaling back fuel relief was the sensible thing to do.
