Government action

Conflict overseas has caused fuel price spikes, and pressure on Australia’s supply. We’re taking action to keep costs down and fuel flowing for Australians.

Decorative.

Here’s how

Increasing fuel supply and availability

Measures are in place to increase fuel supply and reduce the risk of future shortages.

  • The $14.8 billion Australian Fuel Security and Resilience package establishes a permanent government-owned Australian Fuel Security Reserve of around 1 billion litres, and lifts Australia’s critical diesel and jet fuel reserves to around 50 days.
  • The package also includes a $7.5 billion Fuel and Fertiliser Security Facility to support fuel imports, storage and supply through loans, guarantees and insurance arrangements.
  • New legislation allows the government to support fuel imports through financial arrangements such as guarantees, loans and insurance. This has already secured 5 additional diesel shipments and 100 million litres of additional jet fuel and fertiliser to support the market.
  • Engaging with critical regional partners is helping to ensure Australia’s energy supply remains secure and supporting energy security across the region.
  • 20% of reserve fuel has been released, making up to 762 million litres available for Australians across our regions.
  • Fuel quality standards have been temporarily adjusted to allow for 100 million litres of additional fuel to enter our market each month.
  • Coordination between government and the fuel industry is increasing deliveries to service stations, reducing bottlenecks and helping get fuel where it is needed most.
  • Changes to the Fuel Security Services Payment will help our domestic refineries continue operating and adapt to new technologies. This supports ongoing domestic fuel production and supply resilience.
  • The government is working with First Nations organisations and community partners to support access to fuel, energy and essential goods for regional and remote areas. 
  • By encouraging Australians to be conscious of their consumption and consider alternatives, we’re ensuring fuel remains available for essential services and those who need it most.

Making sure savings are passed on to consumers

The government is making sure these fuel price reductions are reflected at the pump.

  • We’ve passed new laws against petrol price gouging, giving the Australian Competition and Consumer Commission (ACCC) new powers and increasing fines for retailers caught ripping Australians off.
  • The ACCC is monitoring fuel prices daily across Australia and tracking how quickly savings are being passed on to consumers.
  • The ACCC is also investigating fuel surcharges and pricing behaviour.

Reducing fuel prices and flow on expenses

The government has cut the price of fuel at the pump and we're limiting cost increases from flowing through to essential goods.

  • We’ve cut the fuel excise to save you 32 cents per litre.
  • The fuel excise duty on petrol and diesel has been reduced by 60.9%. This applies for 3 months from 1 April to 30 June 2026. This reduction of the fuel excise was:
    • announced as an initial 50%
    • followed by an additional 10.9% after the states and territories agreed to forego increased GST revenue – providing motorists an additional $400 million in fuel relief.
  • The heavy vehicle road user charge has been set to zero for 3 months from 1 April to 30 June 2026. This lowers transport costs for freight operators and helps limit flow-on price increases for groceries and other goods.
  • Interest-free loans through the $1 billion Economic Resilience Program will help manufacturing and logistics businesses manage cashflow pressures during the disruption to keep our trucks, trains and planes moving.

Building Australia’s future fuel resilience

The government is investing in strengthening Australia’s long-term fuel security and supply resilience. New measures announced in the 2026-27 Federal Budget include:

  • $10 million for feasibility studies into new and expanded domestic refining capability.
  • $55 million for a Transport Resilience and Capacity Kickstart pilot program to move more freight by rail and ship.
  • $34.7 million to strengthen oversight and management of Australia’s fuel security framework.
  • a 20% domestic gas reservation requiring LNG exporters to supply a portion of their production to the domestic market to ensure stable and affordable gas supply.
  • $1.1 billion will support the Cleaner Fuels Program and $1 billion will progress Round 2 of the Hydrogen Headstart program to diversify Australia’s energy supply away from imported fuels.
  • fringe benefit tax discounts and infrastructure investments will support Australia’s electric car users and the electrification of postal delivery fleets.

Find out more about the fuel supply and security measures announced in the 2026-27 Federal Budget

Providing transparent information

The government is ensuring Australians have access to clear and up-to-date information.