Motorists in Australia face increased fuel expenses as Treasurer Jim Chalmers has verified that the federal fuel excise discount concludes at midnight on Sunday, August 2, 2026.

Due to soaring petrol and diesel costs after Middle East conflict began in late February, the government cut the 52.6 cents per litre excise in half starting April, providing relief for three months until June 30.

The overall reduction amounted to 32 cents per litre once states and territories added 5.7cpl from extra GST revenue due to elevated fuel prices.

The measures also paused the 32.4cpl road user charge for heavy vehicles over the same timeframe. Budget estimates put the total cost at 3.3 billion dollars.

Although the May 12 budget omitted extending the discount, June saw an announcement prolonging the cut until August 2, with federal share dropping from 26.3 to 16cpl starting July 1.

In remarks to media today, Mr Chalmers stated the temporary measure would conclude.

"The fuel excise relief ends at midnight on Sunday since it has effectively helped ease cost of living pressures," Mr Chalmers noted. "It was never meant to be ongoing. We started reducing it early this month to offer additional support with living costs."

Per the Australian Institute of Petroleum, national average unleaded petrol price for week ending July 26, 2026 stood at 182.0cpl, exceeding the four week average of 171.8cpl.

This is compared to 181.0cpl in week ending March 1, 2026 prior to the relief announcement, with four week average at 171.2cpl.

National average diesel retail prices were 180.9cpl for week ending March 1. By July 26 week, it reached 227.2cpl per AIP.

EV sales have risen sharply since the April excise cut, making up a record 23.3 percent of new passenger vehicle sales in June. Tesla Model Y became the first EV to lead monthly new vehicle sales in May 2026.

This follows federal initiatives for fuel security like the Australia Fuel Security Reserve aiming to hold about one billion litres.

Prime Minister Anthony Albanese announced yesterday a 4 million dollar commitment for a pre feasibility study on Australia's potential first new oil refinery in over 60 years.

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