Anthony Albanese has slashed the fuel excise in half in a move which will save motorists 26 cents a litre, and is encouraging people to take public transport where they can, as the national cabinet announces a plan to manage the petrol crisis.

Following a meeting of state and federal leaders on Monday, leaders also agreed to reduce the heavy vehicle road user charge to zero for three months, in a bid to support truck drivers.

“We are making fuel cheaper today because we understand that Australians are under serious pressure,” Albanese said.

The fuel excise cut will come into force from Wednesday. The excise is currently set at 52.6 cents per litre, and will be cut to 26.4 cents.

“We really want to encourage Australians who can to take public transport, to help save fuel for the areas and industries that need it, and I note a couple of the jurisdictions have taken action to reduce public transport fares as well,” Albanese said.

“The less fuel we use in the cities, obviously the more we can direct to regional areas that are under pressure.”

National cabinet met on Monday for the second time to discuss the fuel crisis. The meeting came after state premiers had repeatedly called for national consistency on the response, but had produced different plans on public transport; Victoria and Tasmania will make transit free, but New South Wales and Western Australia declined to follow suit.

Business groups on Sunday called for help for companies to retain employees and cashflow support as flow-on effects from rising fuel prices began to hit various sectors; the National Farmers Federation requested tax breaks and government help in underwriting fertiliser purchases; while concern was also raised for care workers, tradespeople and transport drivers hit hard by ballooning costs.

More details soon…