Fuel Prices Decline Across Australia Following Excise Cut
Adelaide experienced the largest reduction in fuel prices, with unleaded petrol decreasing by 24.9 cents per litre and diesel by 21.3 cents.
Fuel prices began to fall immediately across Australia after the government implemented a fuel excise cut, accelerating cost-of-living relief unexpectedly.
Prices in capital cities initially paused before sharply declining on Wednesday, following the prime minister’s announcement that the tax on petrol and diesel would be halved to 26.3 cents per litre.
Unleaded petrol prices dropped by an average of 16 cents per litre on Wednesday, with prices ranging between 243 and 245 cents per litre on average in Sydney, Melbourne, Brisbane, and Perth, according to NRMA data. Diesel prices fell from 323.5 cents to 311.1 cents per litre on average across Australia.
The most significant decreases were observed in Adelaide, where diesel prices fell by 21.3 cents and unleaded petrol by 24.9 cents—nearly matching the entire fuel excise cut.
The excise cut took effect on Wednesday, but prices were expected to adjust gradually as petrol stations needed to sell existing stocks purchased before the cut. However, service stations immediately reduced prices on average, even for fuel bought with the full 52.6 cent per litre excise.
Ampol confirmed it had passed on the full 26.3 cent reduction to some of its stations from Wednesday morning, with the remainder of its stations implementing the cut throughout the day.
Fuel prices had been rising almost daily in Australia’s capital cities since early March, according to Informed Sources data.
Even before the excise announcement, the market had plateaued, with prices stabilizing over the weekend in Sydney and Brisbane.
From Friday to Tuesday, unleaded petrol prices remained steady in Adelaide at approximately 259 cents per litre and in Darwin at 264 cents. Prices fell in Hobart from 260 cents to 257.5 cents and in Perth from 258.3 cents to 251.7 cents between Thursday and Tuesday.
Fuel Shortages Ease as Availability Improves
Fuel shortages have also diminished, with the number of service stations lacking at least one fuel type decreasing on Wednesday, reversing a previous upward trend.
In New South Wales, 30 stations were out of all fuel types on Wednesday, while 207 stations had no diesel, according to state premier Chris Minns. This marked a decline from 75 stations out of all fuel on Monday, which decreased to 61 by Tuesday, and from 247 stations without diesel on Tuesday.
"My strong suspicion is that that’s as a result of consumers waiting for the excise to be cut before they fill up their tank.
It’s come at a good time in the run-up to the Easter long weekend. It says to me that there’ll be fuel available and that you shouldn’t cancel your plans."
Traffic and Fuel Consumption Trends
Data over March suggests motorists began reducing petrol consumption.
NSW government data indicates that traffic on Pennant Hills Road in the last full week of March fell 2.6% from late February, prior to the surge in petrol prices caused by the conflict in Iran, and 5% compared to the same week the previous year.
Compared with the previous year, traffic decreased by 4.4% on Victoria Road, 2.3% on Parramatta Road, and 1.8% on Military Road. On Anzac Parade in Sydney’s east, traffic was 5% higher than the prior year in late February but declined to 1% below the previous year by the end of March.
Traffic around Sydney airport also declined, with counts falling 9% on Airport Drive and 5% on Qantas Drive from the last week of February to the last full week of March.
Public transport usage in NSW remained largely unchanged, with just under 2.38 million average weekday Opal network trips in the last full week of March, consistent with 2025 figures.
Additional reporting by Penry Buckley and Josh Nicholas.
