The ACCC will continue to closely monitor fuel price changes following the Australian Government’s announcement that it will extend the temporary cut in fuel excise at a reduced rate.
From 1 July until 2 August, the fuel excise cut will be lowered from 32 cents per litre (cpl) to 16 cpl.
The ACCC wrote to fuel retailers late last week reminding them not to take advantage of the partial restoration in excise to profit at the expense of consumers.
The ACCC’s letter also reiterated expectations that fuel retailers be clear and transparent in their communications to customers and able to validate any claims made, including those in relation to prices.
“The ACCC expects that fuel retailers will not attempt to take advantage of this increase in excise,” ACCC Commissioner Anna Brakey said.
“We will closely examine fuel price movements and market behaviour, both in the lead up to and following the increase in fuel excise.”
“We will not hesitate to take action if retailers make false or misleading statements about price movements or if there is evidence of anti-competitive behaviour.”
As fuel excise is partly restored, we recognise that retail petrol and diesel prices may rise in line with the excise change; however, other factors such as international refined fuel price movements also influence retail prices. Fuel retailers may not face higher costs straight away on 1 July as new fuel supplies can take time to reach them.
“We encourage consumers to use fuel price apps and websites to compare prices at different retail sites before filling up to save money,” Ms Brakey said.
The ACCC will continue to provide weekly fuel price updates for all capital cities and over 190 regional locations. The ACCC moved from quarterly to weekly monitoring reports in March 2026, following the start of the Middle East conflict.
Petrol and diesel prices continue to decrease in capital cities
The ACCC’s latest monitoring update shows that in the week to 24 June average petrol prices across Australia’s capital cities reduced to below pre-conflict levels, and diesel prices fell to near pre-conflict levels.
The following tables show the daily average retail prices on 20 February, 31 March and 24 June in each of the eight capital cities for petrol and diesel.
The dates in each table represent the following:
- 20 February – around a week before the conflict in the Middle East escalated
- 31 March – the day before the excise cut came into effect
- 24 June – the latest prices.
Daily average retail petrol prices on 20 February, 31 March, 24 June and the range of prices in capital cities on 24 June – cents per litre
Sources: Informed Sources, various state and territory websites (FuelCheck NSW, WA FuelWatch, FuelCheck TAS, MyFuelNT) and the PetrolSpy website.
Note: Prices from retail sites that require a membership are excluded.
Daily average retail diesel prices on 20 February, 31 March, 24 June and the range of prices in capital cities on 24 June – cents per litre
Sources: Informed Sources, various state and territory websites (FuelCheck NSW, WA FuelWatch, FuelCheck TAS, MyFuelNT) and the PetrolSpy website.
Note: Prices from retail sites that require a membership are excluded.
Note
On 30 March 2026, the Australian Government announced that it would temporarily halve the fuel excise tax on petrol and diesel for 3 months from 1 April 2026. Together with an agreement with States and Territories to forgo GST revenue on fuel (equating to a further 5.7 cpl cut in excise), the overall excise reduction was 32 cpl. The 32 cpl reduction in fuel excise is due to end on 30 June 2026, with the cut reducing to 16 cpl from 1 July to 2 August.
Excise tax is imposed on producers (i.e. refiners) and importers of petrol and diesel, who pass the cost on to buyers of refined products. Excise is one of the major components of the wholesale price of petrol and diesel.
The international benchmark price for refined fuel is the largest component of retail fuel prices. The international benchmark for Australian retail petrol prices is Singapore Mogas 95 (Mogas 95). The international benchmark for Australian retail diesel prices is Singapore Gasoil with 10 parts per million sulphur content (Gasoil 10 ppm).
Australian retail fuel prices are largely determined by movements in international benchmark refined fuel prices (which are driven by international crude oil prices), and the AUD-USD exchange rate. International benchmark prices movements drive domestic wholesale prices, which then influence retail fuel prices.
Background
The ACCC is an independent statutory government authority and Australia’s peak consumer protection and competition agency.
