The Fuel Excise Cut Is Gone. Here's What Happens to Petrol Prices Now

Fuel excise is a flat federal tax charged on every litre of petrol and diesel sold in Australia, indexed to inflation twice a year in February and August. From 3 August 2026 it sits at 53.7 cents a litre, up from the 36.6c relief rate that applied through July. With GST stacked on top, that's roughly 18.8 cents a litre more at the bowser, or about $12.25 on a 65-litre fill.

Treasurer Jim Chalmers confirmed the relief would end on the Sunday without extension, saying it "was never the government's intention for that to be permanent." So the question isn't when prices go up anymore. It's how far, and how long they stay there. If you just want the cheapest servo near you today, the live Fuel Daddy map covers all 8,100-plus stations nationwide, free and with no sign-up.

When did the fuel excise cut end?

The relief ended at midnight on Sunday 2 August 2026. It never came off in one hit, which is why a lot of people aren't sure how much they've actually lost. There were two step-ups: the relief halved on 1 July, then disappeared entirely on 3 August. We covered the first step in our earlier piece on the extended and halved excise cut.

That last bar is worth a second look. The excise didn't go back to where it started. It came back at 53.7c, which is 1.1 cents higher than the 52.6c that applied before any of this began. Excise is indexed to CPI in February and August, and the August indexation (a factor of 1.020) landed on the same day the relief ended. Drivers copped the discount coming off and the inflation adjustment at once.

How much more is petrol after the excise cut ended?

The excise itself rose 17.1 cents a litre, from 36.6c to 53.7c. GST is charged on top of excise, so the number your wallet actually feels is closer to 18.8 cents a litre. That's the figure to use, not the headline tax change.

On a 50-litre tank that's about $9.40 extra. On a 65-litre SUV or ute tank, about $12.25. Fill up weekly at 65 litres and you're looking at roughly $635 a year more than you paid in July. Measured against the deepest relief in April, when excise was 26.3c, the gap is bigger again: about 30.1 cents a litre, or close to $20 a tank.

Want your own number rather than a 65-litre average? Put your weekly distance and tank size into the fuel cost calculator, or see what a fill costs in your exact car in our cost to fill up popular cars breakdown.

Trucks and heavy vehicles cop a second change most coverage skipped. The Heavy Vehicle Road User Charge went back from 16 cents to 32.4 cents a litre on the same day, so operators running diesel fleets are wearing a bigger step than passenger drivers. That flows into freight, which eventually flows into everything else.

Why did petrol prices rise more than the excise did?

Here's where the tax-only version of this story falls apart. The ACCC's weekly monitoring had capital city unleaded averaging 193.6c/L and diesel 232.8c/L in the week ending 29 July, before the final step even landed. Across the five largest capitals, petrol rose 42.1 cents a litre between 30 June and 29 July, ranging from 35.8c in Hobart to 48.1c in Perth.

Compare that to the 1 July excise step, which was worth about 11 cents at the bowser. The tax explains roughly a quarter of the move. The rest is the international market.

The relief was introduced as a response to a global oil shock driven by conflict in the Middle East, and that conflict hasn't resolved. Viva Energy, which runs the Geelong refinery, reported in its 28 July trading update that its Geelong refining margin hit US$21.1 a barrel for the half, helping lift group EBITDA to roughly $770 to $780 million against $305 million the year before. Refining margins like that don't come from Canberra. They come from tight regional supply.

So when the excise came off, nobody went back to April prices minus a discount. They went back to a higher baseline, plus the full tax, plus indexation. As at early August, Sydney unleaded is averaging around 198 to 201c/L, premium 95 is at 215.7c, and diesel is at 243.0c. If you're not sure why your suburb differs from the city average, our guide on how fuel prices are set and the one on why prices vary between suburbs both unpack it.

How long will petrol prices stay this high?

Prices only come down meaningfully if a few things go our way, and most of them are out of our hands.

The geopolitical premium has to unwind first. Crude is carrying a risk premium tied to Middle East instability, and if tensions ease that premium comes out of the barrel price within weeks. Biggest lever by a mile, and Australia has no say in it.

The dollar matters too. We buy crude and refined product in US dollars, so a weaker AUD makes every litre dearer no matter what the barrel does.

Then there's the retail price cycle, which is the only one you can actually use. Most capitals run a cycle where prices spike and then grind down over days or weeks. Timing your fill to the bottom of that cycle still saves you more than any tax policy will. The mechanics differ by city, so start with the one you live in: the Queensland 42-day cycle, the NSW cycle, the Melbourne cycle, or the WA cycle, which runs on a fixed weekly rhythm.

Forecasters had unleaded landing somewhere around $1.78 to $1.98 a litre by year end, with the range depending on exactly the decision that's now been made. With the relief gone, the top half of that range is the realistic one. That's not cheap fuel. It's just fuel that isn't actively getting worse. Our buy-or-wait forecast tracks where your city sits right now.

The excise itself won't move again until the next indexation in February 2027.

Will the government bring the fuel excise cut back?

Not soon.

The relief cost the budget billions, and the government has been explicit that it was a temporary response to an extraordinary period, not a permanent change to how fuel is taxed. Chalmers said the relief "has played a really important role helping to take some of the sting out of these cost-of-living pressures," but that "it was never the government's intention for that to be permanent." In his second reading speech he described the extension as deliberately "temporary and tapered," timed to run to 2 August in line with the scheduled indexation date, so the final removal wouldn't land as a single shock.

Worth being precise about one thing: the government hasn't formally ruled out ever acting again. It has just said this measure was always temporary, and hasn't signalled any intention to revisit it.

There's political pressure. The Coalition has been loud about bowser pain. But the government has been pointing to tax cuts and other cost-of-living measures instead, and there's a parallel push toward a domestic refinery feasibility study as a longer term fuel security play. Another cut would realistically need a fresh oil shock or a sustained campaign. Don't build your household budget around it.

How can I save on fuel now the excise cut is gone?

You can't touch the excise. You can move roughly 10 to 15 cents a litre through timing and location, which isn't far off what the relief was worth.

• Buy at the bottom of the cycle. In most capitals the gap between peak and trough is 20 to 40 cents a litre, bigger than the excise change was. Our best time to buy fuel guide shows how to read the timing.
• Skip the highway servos. Highway and inner-city sites consistently price above suburban competitors. If you're heading interstate, our road trip fuel cost guide covers where to fill and where not to.
• Check before you drive, not after. Neighbouring sites on the same road routinely differ by 15 cents or more. That's the whole reason the live map exists.
• Don't overpay for octane. If your car runs fine on 91 or E10, premium is money burnt. See premium vs regular, E10 vs unleaded 91, and octane ratings explained.
• Lock a price when the cycle is at the bottom. The 7-Eleven fuel lock is the closest thing to a hedge most drivers have.
• Ignore loyalty discounts sitting on inflated prices. A 4-cent docket off a site that's 20 cents above the cheapest servo nearby isn't a saving. Our loyalty programs guide ranks which ones are actually worth it.

Where you live matters too. Regional drivers wear a structurally higher price for freight and thinner competition, which our regional fuel prices guide gets into. If you're in a capital, the cheap suburbs are consistent enough to plan around: Brisbane, Sydney, Melbourne and Perth each have their own patterns. Or jump straight to your area: Brisbane, Sydney, Melbourne, Perth and Adelaide.

One more thing worth knowing: if a station near you has run dry, it's not always priced. Our fuel outages tracker shows which sites are actually out.

Frequently asked questions

When did the fuel excise cut end?

At midnight on Sunday 2 August 2026. The full indexed rate applied from Monday 3 August.

What is the fuel excise rate in Australia now?

53.7 cents per litre on petrol and diesel, from 3 August 2026. That's the 36.6c relief rate plus the restored 16c reduction and 1.1c of CPI indexation.

Why is the excise higher than it was before the cut?

Because excise is indexed to inflation every February and August, and the August 2026 indexation (a factor of 1.020) landed on the same day the relief ended. The pre-relief rate was 52.6c, so the new rate is 1.1c higher.

How much more will a tank cost?

About 18.8 cents a litre including GST, so roughly $9.40 on a 50-litre tank and $12.25 on a 65-litre tank compared with July prices.

Does the excise change affect every state the same?

Yes. Fuel excise is a federal tax applied identically in every state and territory. What differs between states is the base price it sits on top of, which is driven by local competition, freight and where each market sits in its price cycle.

Is the excise cut coming back?

There's no sign of it. The government has described the relief as temporary and tapered from the start, and hasn't signalled any intention to reinstate it. Another cut would realistically need a fresh oil shock.

When does the fuel excise change again?

The next scheduled indexation is February 2027, when the rate is adjusted for inflation again.

The bottom line

The relief is gone, excise is at 53.7c, and you're paying about 18.8 cents a litre more than you were in July. The tax is only part of it though. Prices across the five biggest capitals rose 42 cents between the end of June and the end of July, and most of that came from the international market rather than Canberra.

The excise is out of your hands. The 20 to 40 cent spread between the cheapest and dearest servo in your own suburb isn't. Compare live prices near you on the Fuel Daddy map before your next fill.