Australia Briefing

Australia Cuts Fuel Tax to Ease Energy Price Pressure

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Customers refuel vehicles at a Shell petrol station in Sydney, Australia, on Wednesday, March 25, 2026. Hundreds of service stations across Australia have reported fuel shortfalls, as the war in the Middle East disrupts global supplies.Photographer: Brent Lewin/Bloomberg

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By Richard Henderson

March 30, 2026 at 10:13 PM UTC

Good morning. Today, the economic and financial fallout from the Iran war intensifies as the conflict endures. Interest rates in Australia could reach the highest since 2008, as the central bank continues to hike, according to the latest forecast from Westpac. The forecast shows how aggressively the RBA may have to act to stymie rising prices across the economy caused by higher energy costs as the Iran war grinds on. Still, fuel prices should come down from tomorrow, as the government temporarily cuts its tax on petrol.

Meanwhile, Colonial First State is trying to get ahead of rising inflation by focusing on floating-rate debt, including private credit, which can partly insulate the portfolio from higher interest rates. — Richard Henderson, cross-asset reporter