Government confirms the fuel excise relief ends on Sunday

Australian motorists will lose the temporary fuel excise discount this weekend after Treasurer Jim Chalmers confirmed the relief will end as planned at midnight on Sunday, August 2. Chalmers said the measure helped ease cost-of-living pressure but stressed the government never intended it to become permanent. The current discount reduces fuel prices by 16 cents per litre.

Earlier this week, government comments fueled speculation that the fuel excise relief could be extended or replaced with other measures, but Treasurer Jim Chalmers has now confirmed the discount will end as planned.

Treasurer confirms no last-minute extension

Reports earlier this week suggested the government could extend the fuel excise cut again, as it did in July. Treasurer Jim Chalmers’s comments have now ruled out that possibility.

He said, “Fuel excise relief will end at midnight on Sunday, and that’s because it has played a really important role helping to take some of the sting out of these cost of living pressures.”

“But as I’ve made clear, it was never the government’s intention for that to be permanent.”

Why was the fuel price relief offered?

The standard fuel excise normally adds 52.6 cents per litre to petrol and diesel, but the Federal Government cut the tax by 32 cents per litre and state governments also stepped in to offer a 5.7 cents per litre relief after fuel prices surged following escalating tensions in the Middle East earlier this year. 

Remaining support ends this weekend

The original reduction was expected to last only three months until June 30, but as the conflict continued, the government partially extended the relief into July while reducing the discount to 16 cents per litre.

Now, the remaining discount will end on 2 August, restoring the full fuel excise rate of 52.6 cents per litre.

The government also extended support for the transport industry through the Heavy Vehicle Road User Charge until Sunday. This charge will also return to its full rate of 32.4 cents per litre, from the current 16 cents per litre, when the fuel excise relief ends.