Fuel 
Mark the date: 30 June 2026. That's the last day of the temporary fuel excise halving, and from 1 July 2026 the tax on every litre of petrol and diesel snaps back to its full rate. The Federal Government has signalled it's unlikely to extend the relief, so unless something changes at the last minute, your next few tanks of July fuel will cost noticeably more than they do today.
The headline number floating around is "26.3 cents a litre back on." That's the tax itself - but it's not what you'll actually feel at the pump. Once GST is stacked on top, the real bowser increase is closer to 28.9 cents a litre. Below is exactly what that does to a tank, why the maths works the way it does, and how to soften the blow. If you want the simplest win right now, the live Fuel Daddy map shows the cheapest fuel near you - free, no sign-up.
What is the fuel excise cut, and when does it end?
Fuel excise is a flat federal tax charged on every litre of petrol and diesel you buy. For three months - 1 April to 30 June 2026 - the Government halved it as a cost-of-living measure, taking it from the full indexed rate down to a temporary low. According to the Prime Minister's office, the excise was "halved for three months." That relief window closes on 30 June 2026.
Here's the part that matters: this was always a temporary cut, and the Government has indicated it's unlikely to extend it. So on 1 July, the rate reverts. It's not a new tax or a hike - it's the relief expiring and the normal rate returning. The numbers below come straight from the ATO excise rates and the Department of Infrastructure fact sheet.
How much will fuel excise go up on 1 July 2026?
During the relief, excise sits at 26.3 cents a litre. From 1 July 2026 it reverts to the full indexed rate of 52.6 cents a litre - exactly double - on both petrol and diesel. That's a 26.3c jump in the tax itself. But the tax isn't the whole story at the bowser.
GST (10%) is charged on top of the excise. So when the excise rises by 26.3 cents, GST rises with it, and the actual increase you pay at the pump is 26.3 × 1.10 = about 28.9 cents a litre. This is the figure that trips people up. The "26.3c" you'll see in headlines is the tax change; the ~28.9c is what your wallet feels. Always lead with the bowser number when you're working out your own costs.
What will a full tank cost from July 2026?
The cleanest way to picture it is per tank. Below are the two most common fill sizes, showing both the excise component and the real at-the-bowser increase once GST is included. These figures use the verified 26.3c excise rise and the ~28.9c effective rate.
| Tank size | Extra excise | Extra at the bowser (incl. GST) |
|---|---|---|
| 50 litres (small car) | $13.15 | ~$14.45 |
| 65 litres (mid-size SUV / ute) | $17.10 | ~$18.80 |
The Prime Minister's office put the 65-litre figure at "nearly $19" a tank, which lines up with the ~$18.80 above. If you run a bigger ute or fill weekly, that adds up fast: a single 65L fill every week is roughly $18.80 a week, or close to $980 a year in extra cost compared to the relief period. Plug your own weekly distance and tank size into the Fuel Daddy fuel cost calculator to see your number.
Will pump prices jump the full 29 cents overnight on 1 July?
No - not all at once. Prices won't rise the full ~28.9c the instant the clock ticks over. Retailers hold fuel they bought at the lower-tax rate, so they typically pass the increase through over a few days rather than in a single overnight jump. You'll see it creep in across the first week of July.
It also collides with the normal price cycle. In a metro market mid-cycle, the excise rise can get partly masked by a price fall - or amplified by a price spike - so the bowser number on 1 July won't move in a clean straight line. The way to cut through the noise is to compare live, station by station, on the fuel map rather than guessing from the headline. (New to cycles? Our guides on the Queensland 42-day fuel cycle and the NSW fuel price cycle explain how they work.)
Does this affect QLD, NSW and every other state the same?
Yes - identically. Fuel excise is a federal tax, set by Canberra and applied the same everywhere, so the reversion on 1 July hits Queensland, New South Wales, the ACT and every other state equally. There's no state-by-state variation in the excise itself. Whether you fill up in Brisbane or Sydney, the same 26.3c excise rise (and ~28.9c bowser increase) applies.
What does differ between states is the base price you're paying it on top of - local competition, freight, and where each market sits in its cycle. So the excise change is uniform, but the actual cents-per-litre on the board will still vary by suburb. That's exactly what live comparison is for: browse QLD suburbs or NSW suburbs to see where it's cheapest near you.
One more catch: the rate ticks up again in August
The reversion to 52.6c isn't quite the end of it. Fuel excise is indexed to CPI twice a year, and the next indexation lands around 1 August 2026. That means the rate sits at around 52.6 cents a litre from 1 July, before the August indexation nudges it slightly higher again - a small uplift on top of the reversion.
It's a modest bump compared to the 26.3c reversion, but worth knowing: July is the big step, and early August adds a little more on top. So the cheapest window of the year, by a wide margin, is the final days of June - before either change takes effect.
How to fill up cheap before 1 July (and claw it back after)
The play here is simple. Fill your tank right before 30 June 2026 while the excise is still halved, and time it to the bottom of your local price cycle for a double saving. After 1 July, you can't undo the tax - but you can keep clawing back cents at the pump with the same tactics that work any time of year:
- Top up before 30 June. Run the tank down, then fill at the lowest cycle point you can catch in the last week of the relief. Our best time to buy fuel guide shows how to read the timing.
- Always compare live after July. The gap between the cheapest and dearest servo in one suburb is often bigger than 28.9c. Finding the cheap one cancels out the excise rise - check the live map before every fill.
- Use the cycle. Buy at the bottom, not the top. The savings dwarf the excise change. Our broader guide to saving money on fuel stacks every lever together.
Done right, smart timing and live comparison can save you more per fill than the excise reversion costs you. The tax going back up is out of your hands - finding the cheapest servo isn't.
The bottom line
From 1 July 2026, the fuel excise reverts from 26.3c to 52.6c a litre on petrol and diesel, which lands as about 28.9 cents more at the bowser once GST is added - roughly $14.45 extra on a 50L tank and nearly $19 on a 65L fill. It applies federally, so QLD, NSW and every state pay the same, and the rate edges up again with August indexation. Prices won't jump the full amount on day one, but the cheap window is closing.
Your move: fill up before 30 June while the cut still applies, then keep beating the market afterwards. Compare the cheapest fuel near you right now on the live Fuel Daddy map - free, no ads, no sign-up.
