Government slashes fuel excise, heavy vehicles charge for 3 months at cost of $2.55 billion

By Michelle Grattan, Professorial Fellow, University of Canberra

The Albanese government will halve the excise on petrol and diesel and reduce the heavy vehicle road user charge to zero, both for three months, at a budget cost of $2.55 billion.

Halving the fuel excise will cut the cost of fuel for motorists by 26.3 cents a litre. That will reduce the cost of a 65 litre tank of fuel by nearly $19.

The heavy vehicle charge is currently 32.4 cents a litre. The relief will help the trucking industry.

The cuts will start on Wednesday.

The government will also defer the next increase in the road user charge for six…

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