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 for 3 months starting today. Prices should fall by around 20¢/L — but history shows it can take 1–3 weeks to flow through to the bowser.
What was announced
The federal government today halved the fuel excise for a period of 3 months. The excise — a flat tax levied on every litre of petrol sold in Australia — currently sits at around 50¢/L for unleaded fuel. Halving it removes approximately 25¢/L from the tax component, though retailers don't pass 100% of every tax change through to the pump. The government's own estimate is a reduction of around 20¢/L at the bowser.
When will prices actually fall?
This is the key question — and the honest answer is: not immediately. Fuel retailers buy their stock from wholesalers, who buy from refiners, all with varying lead times and inventory on hand. The last time Australia cut the excise was in March 2022, following Russia's invasion of Ukraine, and the full benefit took 4–6 weeks to appear consistently at the pump — despite the same government telling consumers to expect it within days. A realistic working estimate for this cut is 1–3 weeks from today, with some retailers moving faster than others. Discount chains and independents tend to price through faster than major branded stations.
What this means for when to fill up
If your tank is currently low, the question is whether to fill now at today's price or wait a week or two for the cut to flow through. The 20¢/L saving on a 60L tank is about $12 — meaningful, but not so large that waiting is clearly the right call in all situations. If your tank is half-full or better, it is worth waiting. If you are running low, filling a partial tank now and topping up again once prices fall is a reasonable middle ground. PetrolPulse is monitoring pump prices daily and will update its city recommendations as the cut flows through.
Prices are still elevated by historical standards
The excise cut will bring welcome relief, but it is worth keeping expectations grounded. Petrol prices nationally are materially higher than they were two years ago, driven by elevated crude oil costs and a weaker Australian dollar. The 20¢/L reduction takes the average from around 195–210¢/L in most capitals to approximately 175–190¢/L — a significant improvement, but not a return to the sub-160¢/L prices Australians saw in 2020 or early 2021. Once the 3-month cut expires, prices will revert unless the underlying oil market conditions have also improved.
Track the impact in your city
PetrolPulse updates price data daily for all major Australian cities. Once the excise cut begins flowing through to pump prices — expected from mid-April 2026 — the city recommendation pages will reflect the new price level in both the current average and the cycle forecast. 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.