Fuel excise cut to end with 'lot of notice': Albanese

Prime Minister Anthony Albanese has confirmed the federal government’s temporary fuel excise cut will end as scheduled, arguing the measure was always intended as a short-term relief and that families have been given ample warning. The decision comes amid persistent cost-of-living pressures and ongoing geopolitical tensions in the Middle East, which have kept global oil markets volatile.

Background of the excise cut

The fuel excise was halved by the previous government in March 2022 as a six-month emergency response to soaring petrol prices following Russia’s invasion of Ukraine. The cut, which reduced the excise from 44.2 cents per litre to 22.1 cents, was later extended by Labor but always framed as temporary. Albanese has now confirmed the full rate will be restored from September 29, a date he says was signalled well in advance.

Albanese defends the phase-out

Speaking to reporters, Albanese emphasised that the government had used the intervening months to secure fuel supply chains and monitor Middle East developments. He stressed that while the war in the region could warrant a future review, the current decision had been telegraphed with ‘a lot of notice’. “What we’ve moved to is permanent cost-of-living support,” Albanese said, citing the July 1 tax cuts, increased minimum wage, and expanded paid parental leave as structural measures that will have a lasting impact on household budgets.

Household impact

The ending of the excise cut will add roughly 22 cents per litre to petrol prices, potentially increasing weekly fuel bills by $10–$15 for the average motorist. Consumer groups have expressed concern that the timing, with inflation still elevated, could further strain family finances. However, the government points to its broader package of relief measures, including energy bill rebates and rent assistance, as offsetting the impact.

Separate tragedy: Sydney house fire

In a somber note, Albanese also expressed condolences for three people who died in a house fire in Sydney’s south-west early this morning. Emergency services were called to the property just after midnight, but the blaze had already engulfed the home. Investigations into the cause are ongoing, and police have not yet confirmed the identities of the victims.

Outlook and next steps

Looking ahead, Albanese left open the possibility of revisiting the fuel excise if the Middle East conflict escalates and disrupts global supply. For now, the government is urging Australians to budget for higher pump prices while banking on its broader cost-of-living strategy to ease pressure. With a federal budget due in October, all eyes will be on whether Treasury forecasts justify the end of the pandemic-era subsidy or if further intervention becomes necessary.