The Albanese Labor Government will deliver a major fuel security and price relief package in the Budget, investing $14.8 billion to immediately secure more fuel, strengthen Australia's supply chains and build long-term resilience to future fuel shocks.
The Strengthening Australia's Fuel Resilience package will deliver more fuel for Australian motorists, and more fuel security in Australia's economy.
The package focuses on how to help Australians now, and how to set Australia up better for the future so we are prepared for future shocks.
The conflict in the Middle East is weighing heavily on our economy and compounding the cost of living for families and businesses.
We've acted to shield Australians from the worst of its impacts, by delivering relief for motorists and acting on fuel supply, affordability and security in this Budget.
Boosting Australia's fuel security
- Securing more fuel internationally through the $7.5 billion Fuel and Fertiliser Security Facility, in addition to the around one billion extra litres of fuel secured for the period from March to June through temporarily relaxing the Minimum Stockholding Obligation and adjusting fuel standards
- Building long-term fuel resilience through the $3.2 billion Australian Fuel Security Reserve and increasing the Minimum Stockholding Obligation (MSO), to increase Australia's reserves of diesel and jet fuel to 50 days
- Strengthening the Fuel Security Services Payment to ensure the future of Australia's last two remaining oil refineries, and providing $10 million in 2026-27 to develop feasibility studies to expand our domestic refining capacity
- $54.7 million over five years from 2025-26 to manage Australia's Fuel Security Framework
- $9.2 million over two years from 2025-26 to deliver a nationally coordinated approach to managing disruptions to fuel supply chains through the Fuel Supply Taskforce
Strengthening supply chains and relieving pressure on fuel users
- $2.9 billion to more than halve the fuel excise and slash the heavy vehicle road user charge to zero for three months to 30 June 2026, to help with the cost of living
- $1 billion in interest free loans through the National Reconstruction Fund's Economic Resilience Program, to provide cashflow relief to manufacturing and logistics businesses in critical supply chains. This complements the $5 billion committed to the NRF's Net Zero Fund since last Budget
- $67.7 million over four years from 2026-27 to support greater enforcement of competition and consumer laws by the Australian Competition and Consumer Commission, weekly fuel price monitoring across capital cities and more than 190 regional locations penalties for major breaches doubled from $50 million to $100 million and civil penalties to be introduced for breaches of the Oil Code of Conduct
- Streamlining the ACCC's powers to allow industry to better coordinate during exceptional circumstances
- $55 million in 2026-27 for a Transport Resilience and Capacity Kickstart pilot program to incentivise more freight to move via trains and cargo ships
- Accelerating heavy vehicle reforms through National Competition Policy to increase heavy vehicle transport productivity and support the uptake of zero-emissions heavy vehicles
- An additional $8.2 million in 2026-27 to defer cost recovery arrangements for agricultural export services, with improvements to streamline biosecurity for fertiliser imports
Building resilience
- Delivering the $1.1 billion Cleaner Fuels Program, to boost the production of low-emission fuels in Australia, and working with industry on a market measure to drive demand and to reduce our reliance on imported fuels
- $4 million for a green bunkering strategy to support uptake of low-carbon maritime fuels
- Ongoing support for electric vehicles through a permanent 25 per cent fringe benefits tax discount for eligible electric cars costing up to the fuel-efficient luxury car tax threshold. Electric cars costing up to $75,000 will continue to receive a full fringe benefits tax exemption, provided the arrangement commences before 1 April 2029
- Releasing $40 million over four years to accelerate the roll out of fast kerbside electric vehicle charging infrastructure, as committed as part of the Net Zero Plan announced in MYEFO 2025-26
- $40.5 million in 2026-27 to accelerate the electrification of Australia Post's delivery fleet
The conflict in the Middle East is having a substantial impact on Australian motorists and businesses and we're taking decisivsve action to address this issue.
Our work to reduce the fuel excise and road user charge, secure more fuel, increase scrutiny of prices, and build resilience in our fuel sector is already making a meaningful difference but we recognise we need to do more and we are in this Budget.
It's about taking the sting out of petrol prices and securing more fuel for Australians motorists immediately, and shoring up Australia's resilience and fuel security for the future.
This Budget is all about resilience and reform, which is why our efforts on fuel affordability, supply and security is so important.
