Petrol and diesel prices have not fallen today and averages remain at record levels across Australia – despite the Federal Government’s fuel excise tax cut coming into effect.
On Monday, the federal government announced that it would halve the fuel tax on gasoline from 52.6 cents per liter to 26.3 cents per liter for a period of three months from April 1, 2026.
The cut would save $14.47 on a full tank of a 55-liter Toyota RAV4 Hybrid. The RAV4 was the best-selling petrol vehicle in Australia in 2025.
As part of a four-stage emergency plan, the government also announced it would abolish the diesel heavy vehicle road toll of 32.4 cents per liter imposed on trucks with a gross vehicle weight (GVM) of more than 4.5 tonnes.
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Still, prices at the pump remain high, and drivers across the country are seeing little immediate change.
“It could take a few days for some busy major cities,” said Rowan Lee, chief executive of the Australasian Convenience and Petroleum Marketers Association The Guardian.
“In remote areas where volumes are low, it may take a week or two. Once fuel is refilled, the reduced excise tax will be applied to that fuel and passed on to motorists.”
This delay is due to the fuel tax being collected at the terminal gate before fuel is delivered to gas stations, meaning most fuel currently in tanks has been taxed at the higher rate of 52.6 cents per liter.
Only when the fuel leaves the terminals from today and benefits from the lower tariff of 26.3 cents per liter will it reach the filling stations, where a price drop is expected.
The latest data from the Australian Competition and Consumer Commission (ACCC) shows the average price of petrol in capital cities was $2.53 per liter in the week ending March 27, 2026.
Darwin recorded the highest average price at $2.57 per liter, while Perth recorded the biggest four-week increase, rising 92.2 cents per liter to $2.57 over the period.
Diesel prices have risen to an average of $3.03 per liter nationwide over the same period, and as high as $3.29 per liter in some areas.
The federal government says it has authorized the ACCC to take action against retailers who fail to pass on excise tax savings due to concerns Prices have risen unevenly across the country.
Although price gouging isn’t technically illegal, federal Treasurer Jim Chalmers said regulators should go after companies that do the wrong thing “like a ton of bricks.”
The excise duty cut comes alongside broader measures to support fuel supplies – particularly diesel – including developing domestic reserves, allowing lower fuel quality standards and adopting imports to ensure supplies continue to arrive in Australia.
In a press release on March 28, Prime Minister Anthony Albanese said every shipment of fuel due to arrive in March had landed, while six of the 81 shipments due in April had been “more than replaced.”
The government considers fuel supplies to be stable and has not initiated any further phases of its emergency plan, which could include rationing under difficult conditions.
Federal Energy Minister Chris Bowen said on Tuesday March 31 that 457 petrol stations across the country were out of diesel, while 125 were out of unleaded petrol.
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