April 1st 2026
What is it?
Fuel Excise is a Federal Government tax of 52.6 cents per litre, that is applied to all fuel that is wholesaled in Australia.
Who does it apply to?
Fuel Excise applies to all fuels.
Road transport operators get a rebate from the government of 20.2 cents per litre on the excise paid.
Agricultural businesses, the mining industry and construction industry get a full refund of the fuel excise they pay.
What has changed?
The rate of Fuel Excise was halved as part of the Federal Budget at 23:59 on 31/03/2026 for a period of six months only (i.e. new halved rate is now 26.3 cents per litre).
The halved excise will apply for 3 months.
When will the change show in prices?
Fuel Excise is paid by the wholesaler/ retailer when a fuel tanker truck fills up at the terminal – not by the customer at the pump.
Typically, there is around 3-5 days supply that has passed through the terminals and has been delivered to retailers and regional depots. This volume of fuel will need to be sold (including the higher excise already paid) before the lower excise fuel enters the network.
Low volume sites could take longer to sell their fuel, possibly as much as 14 days. Therefore, it will take time before the higher excise fuel is replaced and retail prices are lowered.