PM to decide on fuel excise extension - News.com.au

Australian Prime Minister Anthony Albanese is on the verge of making a pivotal decision regarding the future of the nation's fuel excise cut, with the temporary measure set to expire on June 30. The government faces immense pressure to either extend the subsidy, which has provided motorists with a crucial 26.3 cents per litre discount, or allow it to lapse, potentially hiking petrol prices by around 30-32 cents per litre overnight. The announcement is expected in the coming days, with the outcome poised to directly impact millions of Australian households already grappling with escalating cost of living pressures. The temporary halving of the fuel excise was initially implemented on April 1, 2026, as an emergency measure to cushion Australians from a global spike in fuel prices, largely triggered by the war in the Middle East and the resulting disruption to oil supplies through the critical Strait of Hormuz. While the federal budget has absorbed an estimated $2.9 billion in foregone revenue over these three months, the government is now weighing continued household relief against the need for fiscal consolidation and concerns about further inflationary pressure. Despite recent reports of a tentative peace deal in the Middle East and falling crude oil prices offering some reprieve, Energy Minister Chris Bowen noted that the economic 'long tail' of the conflict means conditions are far from normal. With the June 30 deadline looming, all eyes are on Prime Minister Albanese and Treasurer Jim Chalmers as they deliberate on this critical fiscal policy. Should the excise relief not be extended, motorists can expect a gradual increase in prices at the bowser from July 1, as existing, cheaper fuel stocks are replaced. The decision will reflect a delicate balance between budget repair, managing inflation, and providing ongoing support for Australians facing persistent cost of living challenges, ultimately shaping the economic landscape for the latter half of 2026.