Tuesday 31 March 2026
Fuel excise halved: what it means for petrol prices and when to expect relief at the pump
The federal government has halved the fuel excise and states have added a GST relief measure, combining for a ~32¢/L saving until June 30. Here's what happened and what it means for prices.
What was announced
The federal government halved the fuel excise for 3 months, effective until June 30 2026. The excise, a flat tax on every litre of petrol sold in Australia, sat at around 50¢/L for unleaded. Halving it removes approximately 25¢/L from the tax component. In addition, state and territory governments agreed to pool GST revenue for a further 5.7¢/L reduction, bringing the combined saving to around 32¢/L at the bowser.
When did prices fall?
The excise cut took effect on March 31 and most retailers began passing it through within days. By early April, capital city averages had dropped 20 to 30¢/L from pre-cut levels. The last time Australia cut the excise was in March 2022 following Russia's invasion of Ukraine, and the full benefit took 4 to 6 weeks. This time the flow-through was faster, with discount chains and independents moving first. The additional GST relief of around 6¢/L is expected to flow through in early to mid-April.
What this means for when to fill up
With the bulk of the excise cut already reflected in pump prices, now is a good time to fill up. Prices in most capitals have fallen from the 250 to 260¢/L range down to around 220 to 235¢/L for unleaded 91. There may be a further small drop of around 6¢/L as the GST relief flows through. If you are running low, fill up now. If your tank is half-full, topping up soon is a reasonable call. PetrolPulse is monitoring pump prices daily and will update city recommendations as the GST relief flows through.
Prices are still elevated by historical standards
The combined 32¢/L relief is significant, but prices remain well above where they were two years ago. Elevated crude oil costs and a weaker Australian dollar have pushed the underlying cost of fuel materially higher. Even after the cuts, most capital city averages sit around 220 to 240¢/L, compared to sub-180¢/L in early 2024. Once the 3-month measures expire on June 30, prices will revert unless oil market conditions also improve.
Track the impact in your city
PetrolPulse updates price data daily for all major Australian cities. The excise cut is already reflected in city recommendations and price charts. Check your city's forecast for the current fill-up recommendation.
Check your city's current forecast to see whether now is the right time to fill up.