Motorists across the country will benefit from a further 5.7 cents per liter rebate, funded by revenue from the Goods and Services Tax (GST), which follows an agreement between all states and territories.
Effective immediately, states and territories have agreed to use additional GST revenue from higher gasoline prices – estimated by the National Cabinet to be around $400 million – to fund the nationwide rebate.
According to the Australian Institute of Petroleum, prices reached a national average of $2.59 per liter last week, with diesel averaging $3.21 per liter.
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The news comes a day after the federal government’s halving of the fuel excise tax came into effect, cutting it from 52.6 cents per liter to 26.3 cents per liter from April 1 to June 30.
The additional GST-funded reduction of 5.7 cents is also due to apply until June 30.
Together, the two measures result in total savings of around 32 cents per liter, equivalent to a $17.60 discount on a full 55 liter tank for Australia’s best-selling petrol vehicle in 2025, the Toyota RAV4.
For diesel vehicles such as the Ford Ranger – Australia’s best-selling model overall over the past three years – the changes amount to a saving of about $25.60 per tank of fuel.
After the excise duty cut, prices have already started to fall.
According to the Australian Competition and Consumer Commission (ACCC), daily average retail prices for petrol were 16.7 cents per liter lower on April 1 compared to the previous day, while daily average retail prices for diesel were 15.0 cents per liter lower.
Prime Minister Anthony Albanese indicated it would take some time for the additional cut to fully filter through to the government.
“This relief is already starting to show in petrol prices, and we expect more to come over the next week or two,” the prime minister said in a press release.
“This is further help with the cost of living for millions of Australians when they fill up. People are under pressure on the cost of living and a lot of that pressure is being exerted at the pump because of the conflict in the Middle East.”
The federal government also confirmed it has adopted the second stage of its four-stage emergency fuel strategy, with Prime Minister and Energy Minister Chris Bowen once again distancing themselves from speculation about fuel rationing.
To ensure more fuel can be imported, temporary lower fuel standards have been permitted, while the government has also guaranteed fuel deliveries to ensure supplies.
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