The prime minister has confirmed the cut to the fuel excise will be extended for one more month but the discount has been slashed in half.

The federal government will extend its temporary petrol price relief package by a month, despite prices hovering near multi-year lows.

A major change to petrol and diesel discounts is coming in July after the US-Iran peace deal raised hopes for price relief at the pump.

The federal government has extended the fuel excise cut, but there's a twist.

Prime Minister Anthony Albanese said he knew Australians were still "under pressure".

The prime minister has confirmed the cut to the fuel excise will be extended for one more month but the discount has been slashed in half.