Australia's fuel excise cut has ended. Here is what that means at the pump.
The temporary fuel tax relief introduced after the Iran conflict expired at midnight Monday. Treasurer Jim Chalmers is urging the fuel price regulator to watch service stations closely for unjustified price rises.
Key points
- Australia's fuel excise cut, a temporary reduction in the federal government tax charged on petrol and diesel, ended at midnight Monday.
- The cut was introduced after the outbreak of the Iran conflict pushed global oil prices higher.
- Treasurer Jim Chalmers has asked the fuel price regulator to watch service stations closely for price gouging.
- The trial of former broadcaster Alan Jones on indecent assault and sexual touching charges began Monday in Sydney.
The cheaper petrol Australians have been paying at the bowser is finished. When the clock hit midnight Monday, the fuel excise cut expired. It had been introduced to cushion drivers from price spikes that followed the Iran conflict.
Prices at the pump are likely to rise. How much depends on whether service stations pass the full cost on immediately or absorb some of it. That uncertainty is exactly what Chalmers wants regulators to watch.
What is the government doing about it?
Chalmers has asked the Australian Competition and Consumer Commission, the national watchdog that monitors prices and business conduct, to keep a close eye on service stations. His words, reported by The Guardian, were direct: watch them "like a hawk."
The concern isn't complicated. When taxes go back up, some retailers may add a larger margin on top, using the excise increase as cover for a bigger hike than the tax alone justifies. The ACCC can name and shame retailers and, in serious cases, investigate anti-competitive pricing. Drivers who think their local station is charging well above the regional average can report it to the ACCC's fuel monitoring service.
AI2Day first covered the excise cut and its effect on prices on 2 August 2026, when the relief was still in place.
What else is happening today?
The criminal trial of former broadcaster Alan Jones began Monday in Sydney. Jones faces charges of indecent assault and sexual touching. It has no connection to fuel policy but will run alongside cost-of-living concerns through the week.
Common questions
How much more will petrol cost now?
The exact rise depends on the size of the excise cut that was in place and how individual retailers respond. Watch your local station's board in the coming days and compare it with the ACCC's weekly fuel price data for your city.
Can the government reimpose the cut if prices spike?
Yes. Excise rates are set by the government and can be adjusted, though doing so requires a deliberate policy decision and isn't automatic. If global oil prices surge again, future relief is possible but not guaranteed.
