From today, 31 March 2026, until the end of June, motorists across Australia are set to benefit from a welcome drop in fuel costs, with the Australian Government announcing a 50% reduction in fuel excise for three months. The cut applies to petrol and diesel and is expected to reduce prices by 26.3 cents per litre while it is in place.
It is a big win for households and businesses, providing some immediate relief as global oil prices and cost-of-living pressures continue to bite. Many drivers should start to notice the difference each time they fill up.
For transport and trucking operators, there is also good news. The Heavy Vehicle Road User Charge, which currently adds 32.4 cents per litre to diesel used by heavy vehicles, will be reduced to nil for the same period. This is a significant saving for businesses in the freight and transport sector.
What is fuel excise?
For those who aren’t aware, fuel excise is a tax we pay to the federal government every time we fill up, which helps transport infrastructure across the country. On average, it adds more than 50 cents per litre to the price of petrol and diesel, so temporarily halving it makes a real difference at the pump.
While the savings will not last forever, they give motorists a valuable window to take advantage of lower prices and get ahead while conditions are more favourable. That is where a few smart habits can help every litre go further.
Fuel smarter: simple tips to save at the pump
Fuel prices might be rising, but staying smart at the pump does not have to be stressful. With a few simple strategies, you can stretch every litre further and keep more money in your pocket. From tracking prices to using discounts and keeping your car in top shape, small changes can add up to noticeable savings.
Here is how to make the most of your fuel:
- Keep an eye on prices with an app
Thanks to real-time pricing updates from petrol stations, fuel apps make it easy to find the best deal near you. Checking prices before you head out ensures you are never paying more than you need.
Popular options include:
- Petrol Spy – Compare local fuel prices and spot the cheapest options nearby
- FuelCheck – The official government app for up-to-date fuel costs
Even a small difference per litre can add up over a few weeks, so having this information at your fingertips is a smart move.
- Time your fill-ups using ACCC insights
Petrol prices usually follow predictable cycles. The Australian Competition and Consumer Commission (ACCC) tracks these patterns across states, giving you a handy guide to when prices are likely to rise or fall.
- Use ACCC petrol cycle insights to understand how prices fluctuate
- In Victoria, prices tend to move in multi-week cycles, so timing your fill-up can help you avoid peak prices
A little planning can make a noticeable difference over time.
- Stack your rewards and discounts
Combining small discounts can save you 8 to 12 cents per litre, and that adds up quickly.
Some easy ways to maximise savings include:
- Supermarket vouchers from Coles or Woolworths
- Membership perks from providers like RACV
- 7-Eleven Fuel Lock, which lets you lock in a low price for up to 7 days
A few minutes of planning can easily save you several dollars each week.
- Keep your car fuel-efficient
A well-maintained car can make a big difference to fuel costs. Paying attention to these factors helps you get the most out of every litre:
- Reduce weight and drag by removing unused roof racks or heavy loads
- Be mindful of air conditioning versus open windows
- Keep tyres properly inflated to improve efficiency
With fuel prices easing for now, it is a great time to build a few smart habits. That way, you are not just benefiting from the short-term drop, you are setting yourself up to save no matter where prices head next.
