Albanese government mulls fuel excise cut as oil prices climb
Iran's drone attack on Saudi oil pushed prices past $100 a barrel, prompting the Australian government to consider fuel excise cuts.
Saudi Arabia shut down a key pipeline after Iranian drones struck it this week. Oil prices surged past $100 a barrel as a result.
Unleaded petrol in Australia now sits around about $2.11 to $2.12 a litre, with diesel at about $2.60, the highest in five months. The government has signalled it is open to cutting fuel excise again, following a previous cut when prices peaked at $2.60 in April.
The attack is part of escalating Middle East tensions, with Iran-backed Houthi rebels now controlling key chokepoints in the Red Sea trade route.
- $2.11 to $2.12 a litre
- Current unleaded price
- $2.60 a litre
- Current diesel price
- Past $100 per barrel
- Oil price spike
- $2.60 unleaded, $3.27 diesel
- April peak prices
Why it mattersFuel excise cuts put money back in drivers' pockets and can reduce pressure on transport costs, but the government must weigh short-term relief against longer-term revenue.
AustraliaAustralians paying close to $2.12 a litre may see that eased if the government acts; transport and logistics costs could fall across the economy.
✓ Claims checked against the source and corrected before publish. checked 10 d ago
