Prime Minister Anthony Albanese is considering extending the temporary fuel excise cut.

Finance Minister Katy Gallagher said on Tuesday that the government remained in 'active' discussions about whether to extend the fuel excise reduction beyond its June 30 expiry.

The measure, introduced three months ago, halves the fuel excise, a federal tax applied to every litre of petrol and diesel. Combined with reductions in GST charged by states and territories, it is currently saving motorists about 32 cents per litre at the bowser.

Global fuel prices fell sharply on Monday after the announcement of a peace deal between the United States and Iran, which led to the reopening of the Strait of Hormuz.

However, prices remain higher than they were before the conflict, with oil trading at about $82 USD a barrel, compared with around $60 before tensions escalated in February.

Speaking on Sunrise, Ms Gallagher confirmed no final decision had been made but said the policy remained under close review.

'It's no secret that we'll keep these matters under review. We know that the cut to the fuel excise has really helped households whilst the war in the Middle East has impacted on petrol prices here,' she said.

Ms Gallagher said the excise cut had helped ease pressure on motorists, alongside the recent decline in global oil prices.

'Petrol prices have come down quite a bit in most capital cities. They're below where they were at the beginning of the war, and that's because the fuel excise has helped, but also because the price of oil has come down,' she said.

She added that Australians would be given advance notice before any changes were made.

'The PM said yesterday that we have this under consideration and that there'll be plenty of notice given to people about any decision we take,' she said.

In Canberra, Albanese confirmed the government was assessing its next move, warning that global conditions remained uncertain despite signs of easing tensions.

'We know that the end of the conflict doesn't mean that we're back to business as usual, and we know that that has been really important in providing support for people,' he said.

'We obviously need to make a decision prior to June 30, and we need to do that in advance.'