Australians are about to see a little relief at the bowser, with Prime Minister Anthony Albanese unveiling a national plan to manage the fuel crisis and promising the country is “acting now” to stay ahead of worsening global turmoil.
“The government understands that people are really worried, but we have a plan to get through this,” the Prime Minister said at a press conference today.
What the national fuel plan actually does
Albanese says the plan has been signed off by every state and territory leader after a flurry of national security, cabinet and national cabinet meetings. He stressed that governments want “one plan, not nine” so the country is not dealing with a patchwork of rules when people are already stressed and confused.
In a significant policy shift for Labor, the government will halve the fuel excise from 52.6 cents to 26.3 cents per litre for three months, a move worth about $2.5 billion.
Fuel excise is a specific tax the federal government adds to every litre of petrol and diesel sold. Just days ago, Treasurer Jim Chalmers had said cutting the excise was not on the table, but Albanese has faced mounting pressure from the Coalition and independents to act as prices soar past $2.50 a litre in some cities.
Albanese said the cut “will reduce the cost of fuel by 26.3 cents per litre”, and that states and territories are finalising a proposal so they do not quietly benefit from higher GST takings on elevated prices. He also encouraged households who can to jump on public transport, noting that “the less fuel we use in the cities, obviously, the more we can direct to regional areas that are under pressure”.
Emergency powers and fuel stock levels
To back up the plan, Chalmers has introduced three bills, including one that gives the finance minister access to funding to buy fuel without parliament’s usual sign‑off, through what is known as an “advance”. He said this power would be used for fuel security measures that are “urgent, unforeseen and unable to be funded through existing funding”, describing the package as a “safety net” rather than new spending for its own sake.
Another bill will let the Commonwealth underwrite fuel purchases by the private sector, something Albanese has framed as “new powers to get fuel here for Australians” by literally underwriting shiploads of fuel and even essentials like fertiliser. Energy Minister Chris Bowen added that this support must be for “additional supplies” and said refiners and importers are currently delivering to regional Australia at “record levels”, citing Viva’s Geelong refinery reporting deliveries “55 per cent higher than normal” last week.
Bowen also updated parliament on Australia’s minimum stock obligation, saying there are 39 days’ worth of petrol (around 6 billion litres), 30 days’ worth of diesel and 30 days’ worth of jet fuel (about 800 million litres) on hand. He has argued that every day without further cancelled shipments “boosts my confidence for the upcoming weeks”, even while warning the global situation remains volatile.
States adding free public transport into the mix
On top of the federal measures, some states are rolling out their own support to ease pressure on both wallets and fuel demand. Tasmania has made all buses and ferries free statewide until July 1 2026 in response to soaring prices, with Premier Jeremy Rockliff saying the government has taken “decisive and strong action” because rising fuel costs are “hurting household budgets”.
Victoria is making all public transport free for a month, from March 31 through April, covering trains, trams, buses and regional V/Line services, as part of an effort to “encourage people onto public transport and take pressure off fuel demand” while prices sit near $3 a litre. Together with the national fuel tax cut and new buying powers, these state moves are designed to give people alternative ways to get around while governments work to keep fuel flowing, especially into regional areas and essential services.
In the meantime, if you’re still feeling the pinch (same), we’ve come up with some money saving hacks to take to the bowser HERE.
Lead image: Getty
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