Aussies slugged with cost of living blow again: Albanese defends ending fuel excise discount as petrol prices surge

By NICHOLAS COMINO, POLITICAL REPORTER, AUSTRALIA and AAP Published: 00:38, 30 July 2026 | Updated: 00:57, 30 July 2026 Prime Minister Anthony Albanese has defended ending the fuel excise tax cuts as many Aussies struggle under the weight of the cost-of-living crisis. The Labor government halved the fuel excise for three months from April in response to rising prices caused by the US-Israeli conflict with Iran, saving drivers 32 cents a litre.  The measure was extended for another month in July, but at a reduced rate of 16 cents per litre.  The extension will lapse on August 2. Albanese said it was always meant to be temporary and the government had spent the last few months ensuring fuel supply amid ongoing tensions in the Middle East. 'What we've moved to is permanent cost-of-living support,' he told ABC News.  'The tax cuts that came in on July 1, the increase in the minimum wage, the move of paid parental leave to six months – all of these measures are making a difference [to the] cost of living.' The excise cut will not be extended despite fresh tensions between the US and Iran causing Brent crude oil prices to rise to more than $US100 a barrel. Prime Minister Anthony Albanese has defended ending the fuel excise tax cuts as many Aussies struggle under the weight of the cost-of-living crisis Average prices for unleaded petrol have climbed to more than $1.80 per litre in all state capitals in recent days, up from about $1.50 at the end of June Drivers have been warned petrol prices could surpass $2 a litre as the excise discount is wound back.  Average prices for unleaded petrol have climbed to more than $1.80 per litre in all state capitals in recent days, up from about $1.50 at the end of June. The jump in oil prices comes as Iran-aligned Houthi militants fired on Saudi oil installations on the coast of the Red Sea and Tehran attempted to shut down shipments through the Strait of Hormuz again. US strikes have recommenced in response to Iranian attacks on vessels travelling through the strait, a key oil transit route. Albanese said a continuation of the conflict would lead to economic pressure. 'The war is having an impact here in Australia and the longer it goes, the bigger the impact will be,' he said. 'This is a war on the other side of the world. 'We are not protagonists in it, but we are impacted by it and we've consistently called for a de-escalation.'