Fuel Excise Relief Ends on 30 June: Costs Jump From 1 July

The temporary halving of fuel excise ends on 30 June. From 1 July, petrol and diesel prices go up by roughly 26 cents a litre overnight.

The cut was introduced in April as a three-month measure to offset global fuel price spikes driven by Middle East supply disruptions. It applied to petrol and diesel equally, and for most businesses that rely on road transport, the lower price quickly became the baseline they budgeted around. That baseline disappears in five weeks.

The direct hit

The maths is straightforward. A dual-cab ute running 12 litres per 100km and covering 600km a week burns about 72 litres. At 26 cents more per litre, that is $18.70 a week, or just under $1,000 a year. A courier or delivery driver doing 1,500km a week faces roughly $47 extra per week, or $2,450 a year.

The second wave is bigger

The direct cost is only half the story. Everything that moves by road gets more expensive with a lag. Building materials, fresh produce, equipment deliveries, refrigerated goods. Suppliers absorb the increase for a few weeks, then pass it through. A 26-cent jump in fuel costs translates to roughly 2-4% on delivered prices for transport-heavy goods, depending on distance and weight. That flow-through typically lands 4-8 weeks after the fuel price shift. August and September is when your supplier invoices start creeping up.

The timing makes it worse

1 July is also the start of the new financial year. Businesses are already dealing with new BAS quarters, payday super going live, updated payroll thresholds, and the cash flow hangover from any EOFY purchases. The fuel cost increase arrives at peak strain.

What to do before 1 July

Reprice now, not later. Any quote, contract, or standing arrangement that covers July or August work needs to be checked against the subsidised fuel rate it was probably priced on. If you charge delivery fees, job travel, or fuel surcharges, update them before 1 July. Doing it retrospectively means you wear the cost for weeks before customers notice.

Check your second-order exposure. If you rely on road-freighted inputs like materials, stock, or equipment, ask your suppliers now whether they are planning a price adjustment in July or August. Knowing the number early gives you time to adjust your own pricing or find alternatives. Businesses that wait until the invoice arrives have no room to negotiate.

Lock fuel where you can. If you have on-site fuel storage or a fleet fuel card with a fixed-price option, fill or lock before 30 June. Not every provider offers this, but some fleet cards allow you to prepay at today's rate for a set volume. It is worth a phone call.

Update, September 2026: the relief was wound back in two steps rather than ending outright. ATO excise rates for petrol and diesel went from 20.6 cents a litre to 36.6 cents on 1 July 2026, then to the full 53.7 cents on 3 August, so the total increase was 33.1 cents rather than the 26 cents estimated here.

This article is general information only and is not financial advice.