Fuel excise: the tax in every litre
What it is, what it costs you, and what a cut would save.
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What is fuel excise?
A federal tax of 53.7c on every litre of petrol and diesel, already in the pump price. With GST on top it’s 59.1c a litre, or $29.54 a tank.
It goes up with inflation every February and August.
What halving it would save on Unleaded 91
Cutting fuel excise by half would save you $14.77 on a 50 litre tank of Unleaded 91.
A fill every , at a litre.
What stands out
- The last cut ended on 3 August, putting 18.8c a litre back on the price ($9.41 a 50 L tank).
- These figures assume stations pass the whole cut on. In 2022 they did, within about six weeks.
- Filling up for a business? You may already claim excise back through fuel tax credits, so a cut saves you less.
What happens to fuel prices if oil goes up?
Every US$10 on a barrel moves the price about — a litre. The cut stays 29.5c.
What would halving it do to each fuel?
| Fuel | Price today | Tax share | With the cut | Saved a tank |
|---|---|---|---|---|
| Unleaded 91 (your fuel) | — | — | — | $14.77 |
| Premium 95 | — | — | — | $14.77 |
| Premium 98 | — | — | — | $14.77 |
| Diesel | — | — | — | $14.77 |
Every grade pays the same excise, so the cut is 29.5c a litre on each. Tax share is excise plus its GST.
When was it last cut?
| When | The cut | Off a litre, with GST |
|---|---|---|
| March 2001 | 1.5c, and the twice-yearly rises stopped until November 2014, leaving it at 38.1c | 1.7c |
| 30 Mar to 29 Sept 2022 | Halved, 44.2c to 22.1c | 24.3c |
| 1 Apr to 3 Aug 2026 | 32c off, then 16c off from 1 July | 35.2c |
Frozen from 2001 to 2014, then rising with inflation. Halved for six months in 2022; 32c off for four months in 2026.
Will it be cut again?
None announced (as at 27 Sept 2026). Both recent cuts followed price spikes from wars overseas, and both ended within six months.
MethodHow we worked it out
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The tax. Excise on petrol and diesel is 53.7c a litre from 3 August 2026 (ATO). GST of 10% is charged on top, so a cut also lowers the GST.
The cut. The slider takes a share of today’s 53.7c rate off, from 5% to all of it. The GST on that excise comes off too, so every saving includes it. The 2022 cut was half of the rate. The 2026 cut was announced as halving the tax and then deepened with the states to 32c a litre (the ATO calls it a 60.9% cut of the 52.6c rate then).
The history. The 2001 freeze and the return of indexation in 2014 are from the Parliamentary Budget Office, the 2022 cut from the 2022-23 Budget, and the 2026 rates from the ATO. Between 2014 and 2022, and from late 2022 to early 2026, the chart draws a straight rise through the twice-yearly steps, which are about half a cent each. That the ACCC found the 2022 cut passed on in full within about six weeks is from its monitoring that year.
The prices. Live national medians from CheckPetrol’s station feeds, the same figures as the map’s fuel picker. Your local price may differ; type your own above.
The oil price. WTI crude, the US benchmark, from a market quote (Trade.xyz) refreshed every 15 minutes. Brent, the price usually quoted in the news, is typically a few dollars higher.
What the oil card assumes. A barrel is 159 litres, and the crude in a litre of fuel is priced as one litre of it. Only that price changes: refining, shipping, margins and the dollar stay put. Australian pump prices follow refined-fuel prices in Singapore more closely than crude, so treat it as a guide, not a forecast. Business fuel tax credits aren’t included.
Frequently asked questions
What is fuel excise?
A federal tax on every litre of petrol and diesel, 53.7c a litre from 3 August 2026. Fuel companies pay it to the government and it’s built into the pump price, with GST charged on top. Most of it goes into the federal budget like any other tax; what the twice-yearly rises have added since 2014 is set aside for roads.
How much is fuel excise in Australia?
53.7c a litre on petrol and diesel from 3 August 2026, set by the ATO and indexed twice a year. GST of 10% is charged on top of it, so excise and its GST add 59.1c to every litre you buy.
When was fuel excise last cut?
In 2026. It was announced as halving the tax, then deepened with the states to 32c off the 52.6c rate, leaving 20.6c a litre from 1 April to 30 June. It was 36.6c (16c off) from 1 July to 2 August, and the full rate came back on 3 August, indexed to 53.7c. Before that, it was halved from 44.2c to 22.1c from 30 March to 28 September 2022.
Will fuel excise be cut again?
No new cut has been announced (as at 27 September 2026). The last two cuts came after war overseas pushed pump prices up fast, in 2022 and 2026, and both ended within six months. The government called the 2026 cut a temporary measure.
What would halving fuel excise save?
About 29.5c a litre including GST, if stations pass it on in full. That’s $14.77 off a 50 litre tank, or about $384 a year if you fill up every fortnight.
Does the price of oil change what an excise cut saves?
No. Excise is a set amount on every litre, so a cut takes the same cents off whatever oil costs. Oil moves the starting price instead: every US$10 on a barrel shifts pump prices by roughly 10c a litre.
Is excise the same for petrol and diesel?
Yes, 53.7c a litre for both. E10 pays slightly less on its ethanol share, and businesses can claim some or all of it back through fuel tax credits, which this calculator doesn’t include.
Rates from the ATO’s fuel excise duty rates, last updated 29 July 2026.