Australia halves fuel tax, offers free public transport as prices surge

Australians will receive temporary relief from rising fuel costs after the federal government and several states announced measures including a cut to fuel taxes and free public transport, Qazinform News Agency correspondent reports.

photo: QAZINFORM

Prime Minister Anthony Albanese said the national government will halve the fuel excise on petrol and diesel for three months starting April 1, lowering prices by 26.3 cents per litre. The measure is expected to reduce the cost of filling a 65 litre tank by nearly 19 Australian dollars.

The move follows a sharp spike in fuel prices linked to the Middle East conflict, which has disrupted global energy markets and increased financial pressure on households.

Under the plan, the reduced tax will remain in place until June 30. The government will also temporarily cut the Heavy Vehicle Road User Charge to zero for 3 months and delay the next scheduled increase by 6 months to support freight operators.

Authorities said the Australian Competition and Consumer Commission will closely monitor fuel prices to ensure the tax reduction is passed on to consumers.

Alongside the federal measures, state governments have introduced initiatives to encourage public transport use and reduce fuel demand.

In the state of Victoria, Premier Jacinta Allan announced that trains, trams and buses will be free for 1 month starting March 31. The offer applies to both metropolitan services and regional V Line routes.

Passengers will not need to tap their travel cards during the period, as ticket gates will remain open. Officials expect services to become busier but say the expanded transport network can handle increased demand.

Allan said the initiative aims to help households manage rising costs while reducing the number of cars on the road.

In Tasmania, Premier Jeremy Rockliff introduced a longer program that allows free travel on public buses and the Derwent River ferry from March 30 until July 1.

State officials said the measure could save commuters significant weekly costs and follows a 20% increase in public transport use across Tasmania in the past week.

More measures to support fuel security and manage economic pressures are expected in the coming weeks.

Earlier, Qazinform News Agency reported that the EU and Australia strengthen relations with Free Trade Agreement.