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Australia Halves Fuel Tax for 3 Months Amid Iran War-Driven Price Surge
Australia Announces Temporary Fuel Tax Cut Amid Iran War Fallout
On March 30, Australian Prime Minister Anthony Albanese announced a three-and-a-half-month halving of fuel tax on gasoline and diesel to curb soaring prices, driven by the Iran War. Additionally, road user charges for heavy vehicles will be suspended for the same period. This tax cut is expected to reduce fuel prices by 26.3 Australian cents per liter. Treasurer Jim Chalmers estimated the fiscal cost of these measures at approximately A$2.55 billion (US$1.75 billion).
Global Oil Price Surge and Australian Response
The Strait of Hormuz, through which about 20% of the world's oil passes, has been virtually closed since the US and Israeli attacks on Iran. This has led to a 59% surge in North Sea Brent crude futures since the beginning of the month, marking the largest monthly increase on record. The Australian government has previously announced other measures, including releasing gasoline and diesel from domestic reserves and temporarily relaxing fuel quality standards. Albanese stated in Canberra, "The impact of the war on the other side of the world is real, and I understand the heavy burden on households facing these rising costs."
Fuel Security Plan and Financial Support
The government is also working with all state governments to develop a fuel security plan to ensure fuel delivery to the most in-need regional areas. According to Albanese, the plan consists of four phases, with the country currently implementing phase two measures to maintain national functionality. Furthermore, to address rising fuel prices, the government has enabled guarantees for spot cargo fuel purchases through its credit institution, Export Finance Australia.
*Source: ニューズウィーク日本版 オフィシャルサイト (2026-03-30)*
