Fuel Excise Cut Explained: What the 26.3c/L Saving Means for You at the Bowser
The federal government has halved the fuel excise for three months. Here's what that means in practice, when prices should drop, and how to make sure you're actually getting the saving.
The federal government has announced the fuel excise will be halved for three months. Here's what that means in practice, when prices should drop, and how to make sure you're actually getting the saving.
What's happened?
Following a National Cabinet meeting on Monday 30 March, the government confirmed the fuel excise — a federal tax applied to every litre of petrol and diesel — will be temporarily cut from 52.6 cents per litre to 26.3 cents per litre. The cut takes effect on Wednesday 1 April and runs through to 30 June 2026 (Source: PM media release).
On a standard 65-litre tank, that works out to roughly $19 in savings per fill. The package is costing the federal budget $2.55 billion.
The heavy vehicle road user charge — currently 32.4 cents per litre on diesel for trucks — has also been zeroed for three months, with its next scheduled increase deferred by six months. That's designed to ease pressure on freight operators, which should eventually help with the cost of goods (Source: ABC News).
What's the National Fuel Security Plan?
National Cabinet also agreed to a four-stage National Fuel Security Plan. Australia is currently at stage two — "Keep Australia Moving" — which focuses on keeping fuel flowing while encouraging voluntary changes to reduce demand, like using public transport, carpooling, or working from home where possible.
The PM has said Australia is a "substantial" distance from stage three ("Taking Targeted Action"), and Energy Minister Chris Bowen has confirmed all scheduled fuel shipments through to 30 March have arrived, with additional cargoes expected in April (Source: ABC News).
Some states are going further
A couple of states have rolled out their own measures to help take pressure off:
Victoria has made all public transport free from 31 March through to 30 April — trains, trams, buses, and V/Line regional services. You won't need to touch on with your myki (Source: Transport Victoria).
Tasmania has gone even further, with free buses and the Derwent River Ferry from 30 March through to 30 June (Source: Premier of Tasmania).
If public transport is an option for even a few of your weekly trips, it's worth taking advantage — every tank you stretch further helps.
Will your servo actually drop prices?
This is worth paying attention to. When the excise was halved back in March 2022 during the Ukraine conflict, the ACCC found the savings took time to flow through to the bowser — particularly in regional areas where fuel turnover is slower and existing stock (already taxed at the full rate) takes longer to cycle out (Source: ACCC media release, March 2022).
This time, the government has put retailers on a shorter leash. The penalty for anti-competitive behaviour by fuel companies was doubled from $50 million to $100 million per offence, with the legislation passing both houses of parliament on 26 March (Source: Senate Hansard, 26 March 2026). The ACCC has also launched enforcement investigations into four major fuel suppliers — Ampol, BP, Mobil Oil, and Viva Energy — over alleged anti-competitive conduct in regional fuel distribution (Source: ACCC).
The ACCC has been publishing weekly fuel price monitoring reports and has specifically encouraged consumers to use fuel price comparison apps and websites to find the best prices and hold retailers accountable (Source: ACCC).
How BowserBuddy can help
That's exactly what BowserBuddy is here for. We track real-time fuel prices across Australia so you can see what your local stations are charging, compare nearby options, and make sure you're not paying more than you should.
Over the coming days and weeks, as the excise cut flows through, you'll be able to use BowserBuddy to see which servos drop their prices promptly — and which ones lag behind. In the major cities, you should see movement within the first few days of April. In regional areas, it may take a bit longer as existing stock is sold through.
Key dates
- 1 April 2026 — Excise cut and heavy vehicle charge reduction take effect
- 30 April 2026 — Victoria's free public transport ends
- 30 June 2026 — Excise cut and Tasmania's free buses expire (unless extended)