Australia's fuel supply and excise cut amid Iran war crisis
Consensus Summary
Australia's fuel supply has improved since the Iran war began in late February 2026, with Prime Minister Anthony Albanese and Energy Minister Chris Bowen reporting stockpiles exceeding pre-war levels. As of May 16, 2026, the country holds 44 days of petrol, 36 days of diesel, and 35 days of jet fuel, the highest since 2023, with 6.2 billion litres in storage and additional shipments en route. The government's temporary fuel excise cut, reducing costs by 26.3 cents per litre, is set to expire on June 30, but Albanese has avoided committing to an extension, instead promising an assessment before then. While petrol prices have nearly returned to pre-war levels, diesel remains elevated. Opposition Leader Tim Wilson has not yet decided whether to support extending the excise cut, pending further supply developments.
✓ Verified by 2+ sources
Key details reported by multiple sources:
- Prime Minister Anthony Albanese announced Australia's fuel supply (petrol, diesel, jet fuel) is now greater than it was before the Iran war began on February 28, 2026.
- Australia currently has 44 days' worth of petrol, 36 days' worth of diesel, and 35 days' worth of jet fuel in stock.
- The fuel excise cut (26.3 cents per litre reduction) is set to expire on June 30, 2026, and Albanese stated the government will 'make an assessment' before then without committing to an extension.
- Energy Minister Chris Bowen reported Australia has 6.2 billion litres of fuel in stock, the highest since 2023, with 52 ships en route and 3.8 billion litres contracted for delivery in the next four weeks.
- The fuel excise cut was introduced on April 1, 2026, and the heavy vehicle road user charge was reduced to zero for the same period.
- Albanese described Australia's fuel supply situation as 'remarkable' and attributed improvements to government efforts, though he warned the crisis is not over.
Points of Difference
Details reported by only one source:
- Albanese highlighted the first of five tax cuts as a key government achievement while discussing fuel supply.
- Albanese warned the crisis is not over and the government will continue to 'work around the clock to make a difference'.
- ABC analysis shows the average price of unleaded 91 petrol was 186.4 cents at 11am on May 16, 2026, nearly back to pre-war levels (181.5 cents on February 28).
- Diesel prices remain about 50 cents higher than on February 28 despite recent drops.
- Shadow Treasurer Tim Wilson stated the opposition has not yet decided whether to support extending the excise cut, saying they will 'wait to see what the challenge to fuel supply is before we make a comment'.
- The government's national fuel security plan places Australia at 'level two' amid ongoing Middle East conflict uncertainty.
Contradictions
Conflicting information between sources:
- ABC states the excise cut was introduced in April 2026, while NEWSCOMAU does not specify the start date but confirms it expires June 30, 2026.
Source Articles
Albo dodges fuel excise question
The Prime Minister has dodged a question about extending the fuel excise cut, spruiking tax changes instead.
PM says fuel supply now above pre-war levels, no word on extending excise cut
Australia's fuel supply is now greater than it was before the Iran war broke out in late February, the prime minister has said, while refusing to indicate whether the fuel excise cut will be extended.