Fuel Excise Cut: Your Actual Savings

The fuel excise has been halved from 52.6 cents per litre to 26.3 cents per litre for three months — April through June 2026. That's a direct saving every time you fill up. But how much does that actually put back in your pocket?

Here's the breakdown by how much you fill up each week:

Weekly litres	Weekly saving	Monthly saving	3-month saving (Apr–Jun)
20L	$5.26	$22.79	$68.38
30L	$7.89	$34.19	$102.57
40L	$10.52	$45.59	$136.76
50L	$13.15	$56.98	$170.95
60L	$15.78	$68.38	$205.14
70L	$18.41	$79.78	$239.33
80L	$21.04	$91.17	$273.52

If you drive a typical family car that burns about 50 litres a week, you're looking at roughly $13 a week or $171 over the full three months. Not life-changing, but it's real money — especially if fuel was already eating 10% or more of your take-home pay.

Use our fuel savings calculator to get your exact number based on your car and commute.

The excise cut is effective from 1 April 2026. But don't expect prices to drop overnight.

Here's why: petrol stations don't pay excise when you fill up — they pay it when the fuel leaves the terminal. That means the fuel already sitting in underground tanks at your local servo was bought at the old excise rate. Stations need to sell through that stock first.

Realistically, you should see the full saving flowing through within 1 to 2 weeks. Some stations — particularly the big chains running price cycles — will drop prices faster to attract customers. Regional areas may take longer.

If you're watching prices, use apps like FuelCheck (NSW), FuelWatch (WA), or MotorMouth to compare prices near you. Don't just trust the sign out front.

If you can wait a week or two, you'll save. The excise cut is immediate but retail prices need time to catch up. Filling your tank right now means you're paying the old excise rate on fuel that was already in the supply chain.

That said, don't run your tank to empty hoping for a bigger drop — the saving is capped at 26.3c/L regardless of timing. On a 60-litre tank, the maximum difference is about $15.78 per fill.

If you normally fill up once a week, just wait for your next regular fill-up and you should see lower prices by then.

The excise cut is temporary — three months, April to June 2026. After June 30, the full excise of 52.6c/L snaps back unless the government extends it.

If the Iran conflict doesn't settle and oil stays above $100/barrel, there'll be massive political pressure to extend. But don't count on it. The last time this happened (2022), the cut was extended once before being wound back.

What this means for you:

• Don't make long-term financial decisions based on the lower price. It's temporary.
• Plan for the price bounce. If petrol drops to $2.00/L during the cut, it'll jump back to $2.25+ when excise returns.
• Use the savings window wisely. Put the $13-20/week you're saving into an emergency fund or against high-interest debt.

The excise cut helps, but it's only 26c a litre. Here's how to stack more savings on top:

1. Drive at 100, not 110. Fuel consumption increases roughly 15% between 100km/h and 110km/h. On a 50km highway commute, that's about $4-5/week saved.
2. Remove roof racks when not in use. Roof racks add aerodynamic drag that increases fuel consumption by 5-10%, even when empty.
3. Combine trips. A cold engine uses significantly more fuel for the first 5km. Three short trips use more fuel than one longer trip covering the same distance.
4. Carpool or alternate days. Sharing the drive with one colleague halves your fuel bill. Even doing it 2-3 days a week makes a dent.
5. Check tyre pressure monthly. Underinflated tyres increase fuel consumption by 3-5%. Your owner's manual lists the correct pressure — it's usually on a sticker inside the driver's door jamb too.

And if you're spending $50+ a week on fuel, it might be worth running the numbers on switching to an EV or hybrid. At these fuel prices, the maths is more compelling than ever.