Coalition calls for immediate halving of fuel tax as national fuel crisis deepens

27 March 2026 • via sarahhenderson.com.au


AI Summary
  • Coalition calls for a three-month halving of fuel tax to ease financial pressure on families and businesses in regional Victoria.
  • Halving the fuel tax could reduce prices by approximately 26 cents per litre.
  • Proposal includes a corresponding cut to the Heavy Vehicle Road User Charge to support freight and reduce costs.
  • Senator Sarah Henderson highlights the urgent need for government action amid rising fuel prices and inflation.
  • Funding options for the tax cut include ending the Electric Car Discount and reversing green hydrogen subsidies.

Regional Victorian families and small businesses are being hit hard by a deepening national fuel crisis, with the Coalition calling on the Albanese Government to immediately halve the fuel tax for three months to deliver urgent relief.

This is a practical step the Government can take today to ease pressure on households and small businesses already stretched by rising costs and now facing surging fuel prices.

Halving the fuel tax would cut prices by around 26 cents per litre for three months.

A corresponding reduction in the Heavy Vehicle Road User Charge should also be provided to ease pressure on freight and keep costs down across the economy.

Senator for Victoria, Sarah Henderson, said people across regional Victoria are already feeling the strain.

“Families and businesses in regional Victoria are paying more for everything, and now they are being hit at the bowser as well,” Senator Henderson said.

“Inflation has already beaten this Government, and now a national fuel crisis is making it worse.”

“Across regional Victoria, we are seeing long queues, stations running dry, businesses struggling with fuel costs, and transport disruptions.”

“When a government cannot manage the basics, Australians pay the price.”

“We will protect Australians’ way of life and restore their standard of living.”

“Right now, that means an immediate tax cut at the bowser and a government that gets fuel where it is needed.”

The Coalition is also putting forward sensible options to fund this relief without adding to inflationary pressure, including:

  • Ending the Electric Car Discount
  • Reversing the Government’s green hydrogen subsidies and tax credits
  • Pausing and strengthening integrity controls around the Home Battery Scheme

These measures will fully fund the $1.5 billion temporary tax cut while easing broader demand pressures in the economy.

“People in regional Victoria cannot afford more delay or more excuses,” Senator Henderson said.

“The Government needs to act now to get fuel where it is needed and deliver immediate cost of living relief.”

  • avatar of Sarah Henderson SH

    Sarah Henderson
    LP Federal

    Shadow Minister for Communications and Digital Safety