ISTANBUL

Australia has decided to halve its fuel tax as the Middle East conflict squeezes global energy supplies and pushes up prices at home.

"We're halving the fuel tax for three months to save you money when you fill up," Prime Minister Anthony Albanese said in a post on US social media company X.

He said the conflict in the Middle East "is pushing up prices at home. And we know Australians are feeling the pressure."

"So we're making every litre of petrol and diesel cheaper through to June 30. We're also cracking down on petrol price gouging with huge fines," Albanese said, warning of "uncertain" things around the world.

As the US-Israeli war with Iran entered its second month and continued to strain global energy supplies, Australia was among the first countries to release oil from its strategic reserves. It also ordered emergency fuel reserves from the US for the first time in decades.

Amid a sharp rise in domestic prices, the Australian states of Victoria and Tasmania on Sunday announced free public transport services to ease the burden on residents.