Fuel 
Update (5 August 2026): both steps have now happened. The relief ended at midnight on 2 August and excise sits at 53.7c a litre. For the current numbers and what happens to prices from here, read The fuel excise cut is gone: what happens to petrol prices now. The article below is the background on how the two step-ups worked.
The fuel excise cut was due to end on 30 June, but the Government extended it for one more month, to 2 August 2026. The catch: it wasn't the full relief anymore. From 1 July the cut was halved, and on 3 August the full rate returned. So instead of one big jump, drivers got two smaller ones - a step on 1 July, then the rest on 3 August.
Prime Minister Anthony Albanese announced the extension, calling a "step down" rather than a clean cut-off the "sensible thing to do." The saving at the bowser roughly halved from 1 July, then disappeared on 3 August when the indexed full rate kicked back in. Below is exactly what each step did to a tank. If you want the simplest win right now, the live Fuel Daddy map shows the cheapest fuel near you - free, no sign-up.
What changed: the cut is extended, but halved
Fuel excise is a flat federal tax on every litre of petrol and diesel. For three months - 1 April to 30 June 2026 - the Government halved it as a cost-of-living measure. That window was meant to close on 30 June. Instead, the Prime Minister announced a one-month extension to 2 August 2026, with the relief stepped down by half from 1 July.
In plain terms: the discount you've been getting halves on 1 July, then ends completely on 3 August. Albanese didn't rule out further extensions if there's "a massive global shock," but the current plan is the step-down. The numbers below use the ATO excise rates - full rate 52.6c, halved relief rate 26.3c - and apply the step-down on top.
How much does fuel go up on 1 July 2026?
During the full relief (to 30 June) the excise sat at 26.3 cents a litre - half the full 52.6c rate. From 1 July the relief was halved, taking the excise to 36.6 cents a litre. That's 10.3 cents more excise than June.
GST (10%) is charged on top of the excise, so the actual increase felt at the pump was 10.3 × 1.10 = about 11.3 cents a litre from 1 July. The headline number is the tax change; the ~11.3c is what your wallet feels. Still better off than full price at that point, but half the saving was gone.
And again on 3 August: the full rate returns
On 3 August 2026 the relief ended and excise reverted to the full indexed rate of 53.7 cents a litre on both petrol and diesel. Measured against the June relief rate, that's a 27.4c excise jump, or about 30.1c a litre at the bowser once GST is stacked on. From the 1 July position, it was a second step of roughly another 18.8c.
There was a sting in the tail too: fuel excise is indexed to CPI twice a year, and the August indexation landed on exactly the same day the relief ended. A factor of 1.020 took the base 52.6c rate to 53.7c - so the excise came back higher than it was before the cut ever started.
What will a full tank cost from July and August 2026?
The cleanest way to picture it is per tank, across both steps. These figures measure against the 26.3c full-relief rate that applied to 30 June, with GST included.
| Tank size | Extra from 1 July (relief halved) | Extra from 3 August (full rate) |
|---|---|---|
| 50 litres (small car) | ~$5.65 | ~$15.05 |
| 65 litres (mid-size SUV / ute) | ~$7.35 | ~$19.55 |
Extra vs the full-relief price paid up to 30 June, GST included.
So a weekly 65L fill cost roughly $7.35 a week more from July, then close to $19.55 a week more from August - around $1,020 a year on top of the relief period now the full rate is back. Plug your own weekly distance and tank size into the Fuel Daddy fuel cost calculator to see your number.
Will pump prices jump overnight on 1 July and 3 August?
No - not all at once, either time. Retailers hold fuel they bought at the lower-tax rate, so they typically pass each 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, then again in early August.
It also collides with the normal price cycle. The excise step can get partly masked by a price fall - or amplified by a price spike - so the bowser number 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 both step-ups hit 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 changes apply.
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 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.
Was it extended again past 2 August?
No. The relief ended at midnight on Sunday 2 August as scheduled. Treasurer Jim Chalmers confirmed it would finish without further extension, saying it "was never the government's intention for that to be permanent." Both step-ups have now landed, and the excise won't change again until the next indexation in February 2027. Our follow-up on what happens to petrol prices now covers where prices went from there.
How to fill up cheap now both steps have landed
The pre-emptive top-up window is gone, but the rest still works. Catch the bottom of your local price cycle and compare before every fill:
- Time the cycle, not the tax. The excise dates are fixed and behind us; the cycle repeats every few weeks and is worth more. Our best time to buy fuel guide shows how to read the timing.
- Always compare live. The gap between the cheapest and dearest servo in one suburb is often bigger than the whole excise change. Finding the cheap one can cancel out the increase - check the live map before every fill.
- Use the cycle. Buy at the bottom, not the top. The savings dwarf the excise steps. 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 steps cost you. The tax going back up is out of your hands - finding the cheapest servo isn't.
The bottom line
The fuel excise cut didn't end on 30 June. It was extended to 2 August 2026, with the relief halved from 1 July (about 11.3c a litre more at the bowser, roughly $5.65 on a 50L tank or $7.35 on a 65L fill) before ending entirely on 3 August, when the indexed 53.7c rate returned - about 30.1c more than the full relief, and 1.1c higher than the pre-cut rate thanks to August CPI indexation. It applies federally, so QLD, NSW and every state pay the same.
Where prices went after that, and what's driving them now, is covered in the follow-up piece. Either way, compare the cheapest fuel near you right now on the live Fuel Daddy map - free, no ads, no sign-up.
