Major cost-of-living blow looms for millions as Albanese government flags ending fuel tax cut

By TESS IKONOMOU FOR AUSTRALIAN ASSOCIATED PRESS Published: 02:04, 10 June 2026 | Updated: 02:28, 10 June 2026 Motorists and transport businesses are being warned to expect an end to a cut to the fuel tax as conflict flares up between Iran and the US. The fuel excise was temporarily halved by the Albanese government, slashing 26 cents off a litre, in response to soaring global oil prices caused by the war in the Middle East. The $2.5 billion measure is planned to run out at the end of June, as Transport Minister Catherine King indicated it would not be extended further. 'We're consulting, obviously, with industry about the impact of that, but people should at this stage expect that it's coming off at the end of June,' she told ABC News Breakfast on Wednesday. 'We are doing everything we can to shield Australians from this conflict in the Middle East.' Ms King said the government's most senior ministers, including Prime Minister Anthony Albanese, have all been working 'incredibly hard' to secure Australia's fuel supply by shoring up key international relationships with partner nations. The US military has begun launching 'self-defence' strikes against Iran in response to the downing of an American Apache helicopter. US President Donald Trump earlier said his nation 'must respond' to the attack.  A fuel excise cut aimed at easing the pressure of the oil crisis is due to expire on June 30 Minister Catherine King says the government is working hard to secure Australia's fuel supply How should the government balance fuel prices with global conflicts and everyday Aussie struggles? What's your view?Iranian state media confirmed explosions were reported in Sirik, a port city along the Strait of Hormuz. Ms King said Australia urged diplomatic solutions to end the conflict in the crucial oil passageway. 'We want to urge all parties to continue to negotiate that,' she said. 'This is a pretty fragile ceasefire, and you're seeing that borne out unfortunately.' Labor has since introduced a $10 billion energy and fertiliser security package to secure the nation's supply chains. Australia's onshore fuel reserves will be expanded to at least 50 days, and a permanent, government-owned fuel reserve of about a billion litres will be established. The minimum stock-holding obligation for suppliers will also be increased by about 10 days for every type of fuel. The comments below have not been moderated. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.