National

Extension on fuel excise relief kept in play by PM

May 16, 2026

Motorists fill up with discounted fuel — A possible extension of the fuel excise cut will be asessed between now and the end of June. -AAP Image

The door has been left ajar for an extension to petrol pump excise relief despite the prime minister reporting healthier supplies of liquid fuels than before the Iran war began.

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Providing the weekly update on Australia's fuel security situation since the conflict started disrupting oil supplies, Anthony Albanese did not rule out a tax relief extension.

The federal government has halved the excise charged per litre at the bowser to lower prices for motorists in a temporary move due to expire at the end of June.

"We'll make an assessment in the lead up to July 1," Mr Albanese told reporters in Sydney on Saturday, before spruiking other forms of tax relief kicking in at the start of the new financial year that may cushion the blow were the excise cut to lapse.

"On July 1, of course, we've got our first tax cuts, one of the five instalments of tax cuts that have been put in place by my government," referencing rejigged income tax cuts and other announced relief packages.

Australia now has 44 days' worth of petrol, two days more than last week's update and eight days more than the day the Iran bombing 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 February 28, when the United States and Israel attacked Iran.

"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.