Australia to halve tax on fuel, underwrite spot cargoes

Australian Prime Minister Anthony Albanese said on Monday the government would halve the excise on fuel and diesel and remove the heavy road user charge for three months to help households cope with a surge in costs driven by the Iran war.



Halving the tax would reduce the cost of fuel by 26.3 Australian cents per litre, Albanese said.



The total cost to the government would be about A$2.55 billion, Treasurer Jim Chalmers said at a joint press conference with the prime minister and Energy Minister Chris Bowen.



Some 20% of the world's oil was transported through the Strait of Hormuz before the U.S.-Israel war against Iran choked off supplies. The price of Brent has surged 59% in March, the steepest monthly gain in history, and was at $115.66 per barrel when the market opened on Monday.



The measures are the latest in a series of fuel security measures adopted by Canberra since the war began on February 28. It has previously announced the release of petrol and diesel from domestic reserves and the temporary relaxation of fuel quality standards.