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FUEL will be 26.3 cents per litre cheaper for Australian motorists from Wednesday after Prime Minister Anthony Albanese announced the federal government will halve the excise on petrol and diesel for three months.

The decision was made at a second emergency National Cabinet meeting today convened by the Prime Minister.

The move will reduce the cost of a 65L tank of fuel by nearly $19, the Prime Minister said.

The halving of the fuel excise will commence from April 1 and run to 30 June.

Further, the Albanese Government will reduce the Heavy Vehicle Road User Charge to zero for three months,  and will defer the next scheduled increase in the Heavy Vehicle Road User Charge by six months.

Mr Albanese said the Australian Competition and Consumer Commission (ACCC) will continue to monitor fuel prices to help ensure that the lower excise rate is fully passed on at the bowser.

Mr Albanese the longer the war goes the worse the impacts will be.

He said actions on fuel taken by his Government since the conflict commenced four weeks included:

• Passing new laws to double penalties for petrol companies for price gouging
• Appointing a national Fuel Supply Taskforce Coordinator and Taskforce
• Releasing 20 per cent of Australia’s petrol and diesel fuel reserves, targeted at regional areas
• Changing fuel standards to get more fuel flowing
• Changing diesel standards so Australia’s refineries can supply more diesel
• Tasking the ACCC to ramp up fuel price monitoring and issue on-the-spot fines.
• Engaging with international partners to keep supply flowing, including securing a supply agreement with Singapore.
• Introducing laws to make sure companies pay truckies fairly when fuel prices spike
• And introduced legislation to underwrite the purchase of fuel by the private sector.

Today National Leaders also agreed and released a National Fuel Security Plan, to coordinate a consistent response across the Commonwealth, States and Territories and keep the community and business updated on further fuel security measures that may be required.

National fuel plan ‘must deliver results’

NSW Farmers has welcomed a coordinated national response on fuel security and fuel supply chain resilience, but says immediate, practical action is needed to fix regional distribution failures now impacting food and fibre production – with the latest data on Friday indicating at least 178 NSW service stations out of diesel.

NSW Farmers President Xavier Martin said today’s announcement of a National Fuel Security Plan and the shift to “keeping Australia moving” was only meaningful if it resulted in hoses in diesel tanks for farmers and communities that had been running on fumes for weeks.

“We welcome national coordination, but farmers can’t run tractors on a framework,” Mr Martin said.

“This is a crisis that requires urgent action, because farmers and truckies need a reliable diesel supply to produce food and fibre, then get it to consumers.

“Government needs to take action today to get that diesel to where it’s needed so this doesn’t become just another talkfest.”

Mr Martin said agriculture was a critical industry, and fuel distribution had to prioritise farmers and the food supply chain – not just in principle, but through sector-specific and region-specific action that removed persistent bottlenecks in the independent distribution network and put diesel in tanks.

“Farmers continue to report shortages and stress heading into this critical period, and ongoing distribution failures risk cascading impacts across livestock movements, feed, cropping programs and broader regional supply chains,” he said.

“After weeks of talking, it’s time for action. Australians need leadership that gets diesel where it’s needed – not more commentary about why it should be working.”

Mr Martin said the National Cabinet statement correctly recognised the need to protect critical services and plan for escalation, but stressed the farming sector needed real-time delivery now, clear triggers, and accountability to ensure the plan translated into outcomes on the ground.

“A plan is only as good as its execution,” Mr Martin said.

“What farmers need to hear next is simple: That country diesel tanks have been refilled, the tractors and trucks are moving again, the dysfunctional middlemen in the fuel industry have been dealt with, and supply stabilised.

“Food supply is a critical service, and if the farm sector does not have guaranteed prioritisation of access to diesel to produce and transport food, there will be considerably more impacts for all Australians.

“This crisis exposes Australia’s vulnerability to global shocks and reinforces the need for stronger domestic supplies – including adequate on shore reserves, domestic production, and policies that guarantee fuel and fertiliser for agriculture.”

Producers under increased financial strain

South Australian farming body Livestock SA welcomed the Federal Government’s decision to temporarily halve the fuel excise on petrol and diesel, but warned that rising fuel, freight and fertiliser costs are placing South Australian livestock producers under increasing financial strain, with flow-on impacts for food production, animal welfare and regional economies.

Livestock SA chair, Gillian Fennell said livestock producers were price takers, not price setters, and had no capacity to pass increased costs down the supply chain.

“Fuel underpins every part of agricultural production, from running machinery and moving livestock, to delivering feed, animal health products and fertiliser. Producers are already reporting freight surcharges of up to 40 per cent, alongside rising costs for fertiliser, animal health treatments and supplements. These are not discretionary inputs; they are critical to productivity and animal welfare.” Ms Fennell said.

“Farmers buy everything at retail prices, sell at wholesale prices, and pay the freight both ways.”

When the cost of essential treatments, feed, fertiliser and transport rises this sharply, producers were forced to make difficult decisions, she said.

“That has implications beyond farm profitability. It affects animal health, productivity and ultimately the cost of producing the high-quality red meat Australian consumers expect.”

Livestock SA said the current fuel crisis highlighted the vulnerability of agricultural supply chains and the need for longer-term solutions around fuel security, freight resilience and regional supply prioritisation.

“This is a critical moment to be transparent with the public about how global shocks flow through to the farm gate.”