The Australian Government has decided to prolong its reduction in fuel excise for drivers for at least one more month after the initial June 30 deadline, without excluding additional prolongations.

During a media briefing in Sydney on Saturday (June 20), officials confirmed the temporary relief would run until July 31, following its start on April 1 as a three-month measure for vehicle owners.

The Federal Budget from May 12 did not factor in any continuation, which sparked questions about whether the measure would lapse after June 30.

In prolonging the relief, authorities lowered the excise reduction from 26.3 cents per litre to 16c/L, delivering a total saving of 32c/L once state and territory contributions were added.

The adjusted 16c/L rate begins on July 1 but is set to end on August 1, returning motorists to the full 52.6c/L excise charge.

Officials will also continue the reduction to the Heavy Vehicle Road User Charge. After dropping to zero from April 1, it will rise to 16c/L, or half the usual 32.4c/L rate, through August 1.

"The 16 cents a litre extension to the fuel tax cut that we've announced today will reduce the cost of a 65-litre tank of fuel by around $11," Australian Prime Minister Anthony Albanese told Sky News.

For context, top-selling diesel and petrol models this year, the Ford Ranger ute and Toyota RAV4 mid-size SUV, feature tank sizes of 80L and 55L respectively.

The relief prompted Ford to provide fuel cards valued up to $5000, or equivalent discounts, on select Ranger variants, along with $4000 reductions on the updated MY26.5 Ranger.

The measures aimed to ease pressure from high fuel prices on drivers and the transport industry, plus ripple effects in related sectors.

They followed tensions between the US and Iran that disrupted crude oil shipments via the Strait of Hormuz since March.

With ongoing strains between the nations, Mr Albanese did not dismiss further extensions. "We'll continue to do what we can to shield Australians from the worst impacts of this conflict, including securing additional fuel from our partners," the prime minister told Sky News.

At the Saturday briefing, Climate Change and Energy Minister Chris Bowen noted Australia holds 44 days of petrol and 32 days of jet fuel, the strongest reserves since 2023.

Elevated fuel prices have boosted electric vehicle demand, as the Tesla Model Y became the first EV to lead national monthly sales in May.

This helped EVs reach a record 19.9 per cent market share last month, marking a 111.6 per cent rise from May 2025.