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Fuel Prices Dip: Diesel Now Under $3 Per Litre Thanks to New Tax Reduction

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The agreement reached with states and territories led to an additional reduction in excise by 5.7 cents per litre.

SMH first use. Petrol prices. The Ampol service station in Fairfield Heights was selling E10 and U91 for under $2 per litre on the second day since the fuel excise was halved by the Federal government. Thursday 2nd April 2026. Photo: Sitthixay Ditthavong
The Ampol service station in Fairfield Heights was selling E10 and U91 for under $2 per litre on the second day since the fuel excise was halved. (Sitthixay Ditthavong)

While the aim was to provide immediate financial relief to motorists and businesses, it took three days for the average unleaded fuel price to decrease to $2.23 per litre, down from $2.46 earlier in the week.

Diesel prices have been slower to drop, with FuelCheck reporting that the average cost per litre has now reached below $3 to $2.97.

Just before the excise cut was implemented on Tuesday, diesel prices in Australia averaged $3.07 per litre.

Meanwhile, since April 1, the price of Premium 98 petrol has dropped by approximately 22 cents, bringing it to an average of $2.52 per litre.

The rate at which fuel prices adjust varies with how quickly stations sell and restock their fuel supplies.

Petrol stations have needed to first sell the batch of fuel they had paid for at the full rate of fuel excise before applying the savings at the pump.

The consumer watchdog had warned fuel retailers that it would be keeping a close eye on prices after the excise was introduced.

Australian Competition and Consumer Commission (ACCC) said it would monitor prices daily in capital cities and across regional areas to ensure the savings were being passed on in full to motorists.

“The ACCC will examine closely any concerns raised with it relating to misleading or deceptive conduct or misrepresentation about excise reductions and retail prices and will take enforcement action where appropriate,” chair Gina Cass-Gottlieb said.

Diesel prices sydney PetrolSpy
Diesel prices have been slower to drop, with FuelCheck reporting that the average cost per litre has now reached below $3 to $2.97. (Supplied)
Petrol prices FuelCheck graph
Price changes for petrol and diesel since last week. (Supplied)

Price relief for truck drivers

WA truck driver and founder of Pilbara Heavy Haulage Girls Group Heather Jones said fuel costs had skyrocketed by 81 per cent since early March, the extra financial burden eating into her already razor-thin margins.

“Fuel used to be about a third of our operating costs – now it’s closer to two-thirds,” Jones said.

“That’s a huge shift, and it’s putting real pressure on operators like me.”

Jones said the fuel crisis has resulted in a lot of “sleepless nights” as she battles to keep her trucks on the road.

The Healthy Heads in Trucks & Sheds foundation warned fuel prices have taken a large toll drivers’ mental health.

“I find myself checking the bank account every day instead of once a week, just trying to stay on top of it,” Jones added.

“You’re constantly doing the maths in your head while you’re driving, and when you’re alone in the cab for that long, it can really build up.”

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