Thousands of motorists will pocket a one-off 20 per cent rebate on car registration in a budget sweetener to ease cost-of-living pressures as fuel prices soar.

War in the Middle East has global oil markets on edge, pushing up prices at the bowser and with households struggling, the Victorian government is turning to car registration fees to return cash to drivers before voters head to the polls in November.

Drivers will get up to $186 back on their car registration – or $372 for two cars – under the one-off rebate to be unveiled in the upcoming state budget.

Victorians pay $930.70 a year for rego, with the rebate applying to light vehicles under 4.5 tonnes, including cars and utes. 

Drivers can claim rebates on up to two vehicles registered in their name, regardless of how many cars are in the household.

The cost-of-living incentive will cost about $750 million in foregone revenue, and follows earlier moves to provide free and half-price public transport.

‘I’m determined to use government to help Victorians who are under pressure,’ Premier Jacinta Allan said. 

‘This won’t fix everything, but it’s immediate action I can take to make a difference.’

‘We can afford it because it’s a one-off cost-of-living help right now, while we are delivering a surplus.’

Australia’s fuel reserves will be refreshed on Sunday after the federal government secured an additional 100 million litres of diesel. 

Two extra cargoes of diesel are on the way following a deal struck between Export Finance Australia and fuel companies Ampol and BP with half to go to regional centres in Queensland, including Townsville, Gladstone and Mackay.

Australia has shored up its fuel reserves amid the conflict in the Middle East, with 10 more days of stock than at the start of the war.

Prime Minister Anthony Albanese held a meeting of the national cabinet on Thursday, his third since the start of the war in Iran, which effectively closed the Strait of Hormuz and sent global oil prices skyrocketing.

Australia now has 46 days of petrol in its stocks, 10 days more than at the onset of strikes by the US and Israel on Iran.