Fuel Excise Rates in Australia
Excise on petrol and diesel is 53.7 cents per litre from 3 August 2026, after the 2026 temporary cuts ended. The next CPI indexation day is 1 February 2027.
Fuel excise rates from 3 August 2026
The rates below are the ATO's simplified version of the Schedule to the Excise Tariff Act 1921. The same 53.7 cent rate also covers kerosene, fuel oil, heating oil, condensate and the other petroleum products in tariff item 10. Aviation fuels are taxed separately and are not shown.
| Fuel | Tariff item | Excise rate |
|---|---|---|
| Petrol (gasoline) and diesel | 10.5, 10.10 | 53.7 c/L |
| LPG | 10.19A | 17.5 c/L |
| LNG and CNG | 10.19B, 10.19C | 36.8 c/kg |
| Denatured ethanol for use as fuel | 10.20 | 17.6 c/L |
| Biodiesel | 10.21 | 19.7 c/L |
The 2026 temporary excise cuts
Excise was cut in two steps in 2026. From 1 April to 30 June it was reduced by 60.9%, and from 1 July to 2 August by 30.4% of the full rate. Both reductions covered petrol, diesel and every other fuel except aviation fuels. Before the cut, petrol and diesel carried 52.6 cents per litre from 2 February 2026.
| Period | Petrol and diesel | LPG | LNG and CNG |
|---|---|---|---|
| From 2 February 2026 to 31 March 2026 | 52.6 c/L | — | — |
| From 1 April 2026 to 30 June 2026 | 20.6 c/L | 6.7 c/L | 14.1 c/kg |
| From 1 July 2026 to 2 August 2026 | 36.6 c/L | 12.0 c/L | 25.1 c/kg |
| From 3 August 2026 | 53.7 c/L | 17.5 c/L | 36.8 c/kg |
The 52.6 cent figure is taken from the ATO fuel tax credit table for the same period, where the off-road business credit equals the full excise rate. The ATO's excise page now lists only the periods from 1 April 2026 and points to data.gov.au for older rates.
How and when fuel excise changes
Section 6A of the Excise Tariff Act 1921 indexes fuel excise to the consumer price index on each indexation day, which it defines as 1 February and 1 August. On each of those days a CPI-indexed rate is replaced by a new rate, but only when the indexation factor is greater than 1, so a rate can also stay where it is.
The ATO gives the indexation factor for rates from 3 August 2026 as 1.020, a 2.0% rise. That is how the pre-cut 52.6 cents became 53.7 cents when the full rate returned. The next indexation day is 1 February 2027. The new rate is not known until the ATO publishes it, so this page will not show a February 2027 figure until then.
Biodiesel works differently: its excise rate increases each July rather than following the February and August CPI cycle.
Fuel excise and fuel tax credits
Excise is built into the price at the pump. Businesses that use fuel in eligible activities get it back as a fuel tax credit on their BAS, keyed to the date the fuel was acquired. For most off-road uses the credit is the full excise rate. For a heavy vehicle travelling on a public road, the road user charge is deducted first.
| Petrol or diesel, from 3 August 2026 | Cents per litre |
|---|---|
| Excise paid | 53.7 |
| Credit for off-road business use | 53.7 |
| Road user charge | 32.4 |
| Credit for a heavy vehicle on a public road | 21.3 |
Work out a business claim, including a BAS quarter that straddles a rate change, with the fuel tax credit calculator.
Frequently asked questions
What is the fuel excise rate in Australia right now?
Petrol and diesel carry excise of 53.7 cents per litre from 3 August 2026. The same rate applies to most other liquid fuels, including kerosene, fuel oil and heating oil. LPG is 17.5 cents per litre and LNG and CNG are 36.8 cents per kilogram.
Is fuel excise the same for petrol and diesel?
Yes. Gasoline (tariff item 10.5) and diesel (item 10.10) have the same excise rate, 53.7 cents per litre from 3 August 2026. Blends such as E10 and B20 are worked out under section 6G of the Excise Tariff Act using that same rate as the base.
When does fuel excise change next?
Fuel excise is indexed to the consumer price index on each indexation day, which the Excise Tariff Act 1921 sets as 1 February and 1 August. The next one is 1 February 2027. The rate only rises if the CPI indexation factor is greater than 1, and the ATO publishes the new rate shortly before it applies.
Was fuel excise cut in 2026?
Yes, twice. From 1 April to 30 June 2026 excise on petrol, diesel and all other fuels except aviation fuels was reduced by 60.9%, to 20.6 cents per litre. From 1 July to 2 August 2026 the reduction was 30.4% of the full rate, giving 36.6 cents per litre. The full rate returned from 3 August 2026, indexed up to 53.7 cents.
Can a business claim fuel excise back?
Businesses that use fuel in eligible activities claim it back as a fuel tax credit on their BAS. For petrol or diesel used off public roads the credit from 3 August 2026 is 53.7 cents per litre, the full excise rate. For a heavy vehicle travelling on a public road the credit is 21.3 cents, because the road user charge of 32.4 cents per litre is deducted.
Has fuel excise been cut before?
Yes. The ATO lists an earlier temporary reduction that applied from 30 March 2022 to 28 September 2022, covering petrol, diesel and all other fuel and petroleum-based products except aviation fuels.
Tax Accuracy & Sources
Reviewed: March 2026 · Tax year: 2026-27
ATO excise duty rates for fuel (tariff item 10) from 1 April 2026, plus the pre-reduction petrol and diesel rate from the ATO fuel tax credit table. Aviation fuels, blends worked out under section 6G and the certain petroleum-based products in item 15 are not listed.