When Does the Fuel Excise Cut End? Petrol Prices From 1 July 2026

The halved fuel excise ends at 11:59pm on 30 June 2026. From 1 July 2026, the fuel excise reverts to the full indexed rate — roughly 52.6 cents per litre on petrol and diesel, up from 26.3 cents while the cut is in place.

That's a 26.3c/L jump at the bowser, before GST. Because GST is applied on top of the excise-inclusive price, the actual pump-price increase is closer to 28.9c/L.

You can see exactly what the cut is saving you today — and what will disappear on 1 July — in our Fuel Savings Calculator.

In April 2026 the Federal Government halved the fuel excise as a temporary cost-of-living measure. The usual indexed rate of 52.6c/L dropped to 26.3c/L for three months: April, May and June 2026.

The legislated end date is 30 June 2026. It was set up the same way the 2022 Morrison-era cut was — as a fixed-term measure that expires automatically. No parliamentary vote is needed for it to end. It just ends.

The ATO confirmed the original rate structure and end date in its April 2026 fuel tax credits bulletin. You can cross-check the ATO's excise duty rates page for the live numbers.

Here's the snap-back impact at the pump, assuming the cut reverts in full on 1 July 2026:

Tank size	Extra per fill-up	Per month (4 fills)	Per year
40 L (small car)	+$11.55	+$46	+$555
55 L (mid-size sedan)	+$15.88	+$64	+$763
70 L (SUV)	+$20.21	+$81	+$971
90 L (ute / 4WD)	+$25.98	+$104	+$1,248

Numbers include GST on the excise component (28.9c/L gross). If you want to plug in your own weekly kilometres and fuel economy, our Fuel Savings Calculator does it to the cent.

Possibly, but it's not the base case. Three things to watch:

• The May Budget reply / pre-election positioning. If cost-of-living remains the dominant political issue and oil prices spike ahead of 1 July, either side of politics could propose an extension. Treasury has costed the 3-month cut at around $1.1 billion in foregone revenue — a 6-month extension would roughly double that.
• Global oil prices. If Brent crude is above US$95/barrel heading into June, there'll be louder pressure to extend. If it's drifting below US$80, the political cost of letting it lapse is much lower.
• Indexation in August. Even if the cut is extended, fuel excise is indexed to CPI twice a year — next scheduled increase is 4 August 2026. That will push the rate up regardless.

Our honest read: plan for the cut to expire as scheduled. If it gets extended, that's upside. If you budget for 26.3c/L more from July and it doesn't happen, you've just padded your savings — not a bad outcome.

1. Lock in your May-June fuel spend and rebuild your fuel budget for July onwards. If you drive 250km/week in a 7L/100km car, you're spending roughly $26/week on fuel now. That becomes $32-33/week from July. Over the rest of the 2026 calendar year, that's ~$160 extra — enough to matter for most household budgets. Update your Budget Planner accordingly.

2. Fill up cheap the last week of June. Service stations buy wholesale. Most won't reprice up instantly on 1 July — but pump prices will converge upward within 3-5 days. A full tank on 29-30 June saves you real money.

3. Use the FuelCheck / PetrolSpy apps properly. Price variance between stations on the same day regularly hits 25-30c/L. That's larger than the excise change itself. Apps like FuelCheck (NSW/QLD/TAS/WA), 7-Eleven Fuel Lock (nationally, 7-day price lock), and PetrolSpy turn this from "hassle" into "30 seconds of savings".

4. Reconsider the short trips. If you're driving 5km for something you could walk, cycle, or bundle with another trip, the snap-back makes the maths meaningfully worse. Stacking errands is a 5-10% fuel reduction for most households.

5. If you're due for a new car, run the EV numbers. Our fuel calculator includes a petrol-vs-EV comparison. The delta gets wider from 1 July. It doesn't suddenly make an EV right for everyone, but it does sharpen the case for people already on the fence.

The fuel excise cut ends on 30 June 2026 and the government has not signalled an extension. From 1 July, expect petrol prices to rise by roughly 28-29c/L, all else equal. On an average 55L tank, that's about $16 extra per fill.

This isn't a crisis-level change for most households, but it is a real hit — around $600-$1,000 a year for a single mid-size-car family, more for tradies and SUVs. The people who'll feel it least are the ones who rebudget in May rather than in July.

None of this is financial advice. Figures are based on ATO-published excise rates and standard GST treatment, accurate as of April 2026. Check current excise rates at the ATO before making decisions.