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ENERGY SUBSIDY - JAKARTA. Australian Prime Minister, Anthony Albanese, has officially announced emergency measures to shield the domestic economy from the surge in global energy prices.
In a National Cabinet meeting on Monday (30/3), the Australian government agreed to cut fuel taxes by 26.3 cents per liter, effective from Wednesday, April 1, 2026, for a period of three months.
This aggressive policy comes in the wake of escalating conflicts in the Middle East that have driven up global crude oil prices from US$ 60 to US$ 116 per barrel since the beginning of the year.
Australia's Treasurer, Jim Chalmers, has calculated the total cost of this living cost aid to reach A$ 2.55 billion, plus the loss of potential revenue of A$ 53 million due to the abolition of road usage fees for heavy vehicles.
"We understand that this cost of living pressure is real. The impact of the war in other parts of the world is felt at our gas stations. The government is acting now to protect Australians from the worst impacts," Prime Minister Albanese emphasized in a statement broadcast live on the Youtube channel @AUSParliamentLive, Monday (30/3).
Four Stages of Energy Security
The Australian government has also released a National Fuel Security Plan that includes four strategic action levels:
First: Plan and Prepare, which involves strict monitoring when supplies are still normal.
Second, Keep Australia Moving (Current Status): Strengthening supplies through preventive measures and encouraging voluntary savings.
Third, Targeted Action: Focusing fuel distribution to priority sectors if supply disruptions continue.
Fourth, Protect Essential Services: Full government intervention to ensure vital services and the economy continue to operate.
Logistics & Transportation Stimulus
In addition to cutting fuel taxes for retail consumers, the Australian government has also abolished the Road User Charge for heavy vehicles for three months.
This move is aimed at maintaining the cash flow of small truck companies that are often pressured due to 30 to 90-day contract payment schemes.
The next scheduled road usage rate increase has also been officially postponed for six months.
Meanwhile, Australian Energy Minister, Chris Bowen, added that the government through Export Finance Australia has made significant interventions to ensure international fuel cargo continues to head to Australia, rather than being diverted to other countries.
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"We ensure that Australian companies can compete in the highly fluctuating Asian and US spot markets," he said.
Although short-term supplies are claimed to be secure, with the arrival of nine additional ships replacing six ships that failed to arrive in March—the government still urges the public to wisely consume fuel and switch to public transportation to secure stocks for regional areas.
This fiscal move is projected to be able to cut headline inflation by 0.5 percentage points until the June 2026 quarter.
PM Albanese ensures coordination with the states remains solid, including an agreement not to take advantage of the increase in value-added tax components due to this price fluctuation.
