The possibility of extending the excise relief on petrol pumps remains open, according to the Prime Minister, even as he reports that Australia’s liquid fuel supplies have improved since the onset of the Iran conflict.
Prime Minister Anthony Albanese, delivering his weekly briefing on the nation’s fuel security situation, did not dismiss the idea of prolonging the tax relief. This update comes amid ongoing disruptions to oil supplies due to the conflict.
To alleviate costs for consumers, the federal government had previously reduced the excise tax charged per litre of petrol. This temporary measure, aimed at lowering prices at the pump, is scheduled to conclude at the end of June.
“We will evaluate the situation as we approach July 1,” Albanese stated to reporters in Sydney on Saturday. He also highlighted other forthcoming tax relief measures that could help ease the impact if the excise cut were to end.
“On July 1, we are introducing our first wave of tax cuts, the first of five installments designed by my government,” Albanese explained, referring to the restructured income tax cuts and additional relief packages that have been announced.
As of now, Australia’s petrol reserves stand at a 44-day supply, marking an increase of two days from the previous week’s update and eight days more than when the Iran conflict began.
The country has 36 days worth of diesel and 35 days worth of jet fuel.
The prime minister said Australia had more petrol, jet fuel and diesel than on 28 February, when the United States and Israel attacked Iran. It’s not the first time he’s used that line, first deployed in a fuel report in April.
“We are in a better position than anyone was predicting prior to Easter, when we did the national address,” he said.
Australia remains at level two of its fuel plan that requests users only buy what they need and take voluntary steps to use less.
The 2026 federal budget, handed down on Tuesday, included a multi-billion-dollar fuel resilience package, including a $7.5 billion fuel and fertiliser security facility and $3.2 billion Australian fuel security reserve.
The package is designed to facilitate at least 50 days of onshore fuel supply and storage of diesel and aviation fuel.
Australia has also been ramping up its efforts to secure fuel supplies, with an additional three spot-market diesel cargoes secured on Friday.
The federal opposition, led by Angus Taylor, has been calling for the minimum stock-holding obligation to meet the 90-day requirement under the international energy treaty and advocating for more domestic oil and gas mining.
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