Australia halves fuel tax for three months as Iran war drives up costs

Australia will halve the tax on fuel and diesel for three months in a push to bring down costs that have surged due to the U.S.-Israeli war on Iran, Prime Minister Anthony Albanese said on Monday (March 30).

The halving of the tax, known as the fuel excise, would reduce the cost of fuel by 26.3 Australian cents ($0.18) per litre, Albanese said.

The government would also pause the road user charge on heavy vehicles for three months.

The measures are expected to cost the government A$2.55 billion ($1.75 billion).

Production: Hollie Adams, Cordelia Hsu/Reuters