Skip to main content
See every side of every news story
Published loading...Updated

Bowen Defends Excise Cuts as Inflation, Rates to Soar

The $2.5 billion excise cut will reduce fuel costs by about 26.3 cents per litre, saving motorists roughly $19 per 65-litre tank as part of a three-month relief plan.

  • On Wednesday, the federal government will halve the fuel excise for three months, a $2.5 billion emergency measure aimed at easing cost-of-living pressures from the escalating Middle East conflict.
  • Energy Minister Chris Bowen attributed fuel supply disruptions to panic buying, saying demand increased by 100 per cent following escalating tensions in the Middle East.
  • The excise reduction of 26.3 cents per litre will save motorists about $19 per 65-litre tank, though Treasurer Jim Chalmers warned full benefits will take one to two weeks to materialize.
  • While Liberal leader Angus Taylor labeled the plan "overdue," economists warned the stimulus could drive up inflation, potentially forcing the Reserve Bank to consider further interest rate hikes.
  • States and territories agreed to return GST revenue earned from higher fuel prices to the federal government, while the ACCC will monitor retailers to ensure savings reach consumers.
Insights by Ground AI

15 Articles

Think freely.Subscribe and get full access to Ground NewsSubscriptions start at $9.99/yearSubscribe

Bias Distribution

  • 57% of the sources lean Right
57% Right

Factuality Info Icon

To view factuality data please Upgrade to Premium

Ownership

Info Icon

To view ownership data please Upgrade to Vantage

Australian Financial Review broke the news in Sydney, Australia on Monday, March 30, 2026.
Too Big Arrow Icon
Sources are mostly out of (0)

Similar News Topics

News
Feed Dots Icon
For You
Search Icon
Search
Blindspot LogoBlindspotLocal