The introduction of the Export Finance and Insurance Corporation Amendment Bill 2026 announced on Monday (30 March) is expected to deliver a crucial funding mechanism to increase the supply of fuel and assist Australia’s energy needs.
As part of the amended bill, the Australian Government will halve the fuel excise on petrol and diesel for three months. The halving of the fuel excise will reduce the cost of fuel by $0.0263 per litre. This will reduce the cost of a 65 litre tank of fuel by nearly $19.
The halving of the fuel excise will begin from 1 April 2026 and run to 30 June.
Further, the federal government will also reduce the heavy vehicle road user charge to zero for three months. In parallel, the federal government will defer the next scheduled increase in the road user charge by six months.
In development for months by the Federal Resources Minister Madeleine King and her team, these tools can now be assigned to the matter of securing fuel supplies for Australia, considering the ongoing Middle East conflict.
Speaking from Canberra, Warren Pearce, Chief Executive of the Association of Mining and Exploration Companies (AMEC), says the bill gives Export Finance Australia (EFA) a fresh suite of tools to deliver the Strategic Reserve’s objectives, as well as secure, sell and selectively stockpile fuel and other materials.
“While its development initially focused on critical minerals, the Commonwealth Government has been able to pivot and find another way to directly respond to current supply chain disruptions,” Pearce says.
AMEC notes the halving of the fuel excise, alongside broader measures under the National Fuel Security Plan, provides much needed certainty at a time of global disruption to fuel supply chains.
Pearce adds that this is direct action that will deliver direct results.
For industry, these measures will play a critical role in keeping exploration and mining operations moving, particularly in regional and remote areas where diesel supply is essential.
AMEC represents over 500 companies as an industry association from all over Australia.
Mining.com.au is an associate member of AMEC.
Write to Aaliyah Rogan at Mining.com.au
Images: AMEC
