Albanese fuel tax cut lifts consumer sentiment from the worst results since records began in 1973
Anthony Albanese’s temporary halving of petrol and diesel taxes has lifted a key consumer sentiment reading from its worst results since records began in 1973.
Australian consumer sentiment has recovered from the worst reading since records began in 1973 following a temporary halving of fuel tax to provide relief during the Middle East conflict.
The ANZ-Roy Morgan consumer sentiment reading for the week ending on April 5 showed a small bounce after petrol and diesel excise was temporarily cut to 26.3 cents a litre on April 1 for three months.
Motorists are now paying less than $2.30 a litre for unleaded, on average in capital cities, after previously paying more than $2.50 a litre in March, in the weeks after US strikes on Iran caused crude oil prices to soar to record-high levels above $US100 a barrel.
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By continuing you agree to our Terms and Privacy Policy.A 3.5-point improvement saw the consumer sentiment index rise to 62.3 points, up from 58.8 points in the week to March 29 which was the worst reading since records began in 1973 during the year of another global oil crisis.
The overall score is still well below the 100 level where optimists outnumber pessimists and significantly below the 108.9-point average since 1990.
Australia is particularly vulnerable to the worst global oil shock since the 1970s because the diesel and jet fuel, imported from refineries in Asia, is made from crude oil that can’t get through the Strait of Hormuz.
“Australia is most exposed where global markets are tightest: diesel and jet fuel,” ANZ commodity strategists Daniel Hynes and Soni Kumari said.
“Australia will continue to be sensitive to prolonged disruptions driven by the conflict.
“The conflict has removed precisely the types of crude best suited to diesel and jet fuel production.”
Historically weak consumer sentiment is particularly hurting the retail sector with the number of insolvencies soaring by 20 per cent in a year, new Australian Securities and Investments Commission data showed.
The number of retailers going into external administration for the first time climbed to 728 in the nine months to March 31, up from 607 during the nine months to March 31, 2025.
Construction still had Australia’s highest number of insolvencies but the number going into administration fell slightly from 2552 to 2463.
Hospitality businesses appear for now to be less affected by higher inflation and interest rates with the number going into administration falling by 14 per cent to 1513, down from 1763.
