State and territory leaders reached a unanimous agreement to lower petrol prices by adding another 6 cents per litre cut on top of the existing excise reductions, with the measure in place until June 30.

The move aims to reduce transport costs to help ease inflation and downstream prices for food and business costs.

Victoria initially resisted the change but changed course, while Queensland reportedly did not support altering the tax arrangements; nonetheless, leaders achieved a unanimous agreement at the Council of Australian Governments meeting.

The policy builds on the GST windfall from higher fuel prices, which boosted GST receipts by about $400 million each month, and is designed to deliver real pump relief for consumers and businesses.

Premier Roger Cook of Western Australia noted the unanimous agreement by state and territory leaders to deliver relief at the bowser and counter inflationary pressures driven by transport costs.

Prime Minister Anthony Albanese announced a three‑month federal excise cut on petrol, with implementation details left to the states and territories; most signaled support for an additional 6‑cent cut by foregoing part of the windfall.

The policy packages combine the existing 26‑cent-per-litre excise reduction with the new 6‑cent cut, together lowering petrol and diesel prices at the pump.