Prime Minister Anthony Albanese announced a temporary 50% reduction in the fuel excise.
The emergency measure, unveiled following a National Cabinet meeting on March 30, is set to remain in place for three months.
Treasurer Jim Chalmers confirmed the relief package is expected to cost approximately $2.55 billion, providing an immediate reprieve for motorists by slashing roughly $19 off the cost of filling a standard 65-litre tank.
The intervention forms the centrepiece of a four-stage "Keeping Australia Moving" strategy designed to protect critical services and ease the rising cost of living.
Beyond the excise cut, the Commonwealth has scrapped the heavy vehicle road user charge for three months and deferred its next scheduled increase for half a year—a $53 million commitment aimed at supporting a transport industry under immense strain.
"This is about taking pressure off them," the Prime Minister told reporters, noting that the sustainability of the freight sector is vital to national stability.
While Energy Minister Chris Bowen expects the legislation to pass the Lower House, the plan's fate in the Senate remains contingent on support from the Coalition or the Greens.
Amidst the policy shift, the Prime Minister urged Australians to proceed with Easter holiday plans to support the tourism sector, even as Victoria and Tasmania move to make public transport free for a month to conserve fuel for essential industries.