Millions of Victorian motorists could receive significant discounts on registration with a new government scheme aimed at tackling soaring cost pressures.

From June 1, Victorian motorists can apply for a 20 per cent rebate on two light passenger vehicles registered to their name.

With Victorian registration prices rising above $930 this year, the one-off rebate could give motorists up to $186 back on their vehicle registration, or a saving of $372 for two vehicles.

The cash back scheme aligns with the government’s recent decision to provide free public transport until May 31, slashing fare prices by half from June 1 until the end of the year.

The registration discount initiative is expected to cost around $750m in lost revenue, on top of the $432m cost to reducing public transport fees.

Premier Jacinta Allan said the scheme was a direct response to petrol pricing surges in the wake of the conflict in the Middle East.

The Victorian Premier assured benefits of the new cost saving measure would outweigh any cost burden.

“I am determined to use government to help Victorians who are under pressure,” she said.

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

“Like cheaper PT (public transport), this won’t fix everything, but it’s immediate action I can take to make a difference.”

Up to four million registered Victorian cars, utilities and motorcycles could receive the cash benefit; however, fleet cars and heavy commercial trucks over 4.5 tonnes will be excluded from the scheme.

Eligible motorists will need to apply through the Service Victoria website where they can fill out an online form and have cash back in their bank accounts within 90 days.

Motorists will only have two months to take up the offer as applications close on July 31.

Energy Minister Chris Bowen earlier this month announced a four-month extension to the Federal government’s policy allowing higher levels of sulphur in petrol.

Global oil prices skyrocketed when the Iran-US conflict forced the Strait of Hormuz to close, with around a fifth of the world’s oil supply shipped through the Strait before the war began.

Further fuel supply and pricing concerns arose when one of two Australian oil refineries caught alight this month; however, operators Viva Energy claimed in mid-April the fire hadn’t made a “very large impact” on outputs.