The Australian government will reduce taxes on gasoline and diesel by 50% to mitigate the impact of rising fuel prices caused by the conflict in the Middle East.

The Australian government, led by Prime Minister Anthony Albanese, has announced a 50% reduction in fuel taxes, starting from April 1 and lasting until June 30, in response to the rise in international oil prices, which have exceeded $116 per barrel. This measure will reduce the cost of gasoline by 26.3 Australian cents per liter, saving nearly $19 for a 65-liter tank. Although Australia is a major exporter of coal and natural gas, 80% of refined fuel comes from imports. The average prices of diesel and gasoline have increased by 10% and 8%, respectively, in the week leading up to March 25. Representatives of automotive associations have emphasized that the tax reduction will have a limited impact, considering the rapid increase in prices. Additionally, the government has suspended the heavy vehicle tax for three months. Despite the panic buying, officials have assured that energy supply remains secure, with sufficient fuel reserves.