From 30 March 2022, the excise and excise equivalent customs duty (excise) rates for petrol, diesel and all other fuel and petroleum based products, except aviation fuels, will be halved for 6 months.
For petrol and diesel, the rates will be reduced from 44.2 cents to 22.1 cents per litre.
The halving of fuel excise rates will end on 28 September 2022.
An Australian household with at least one vehicle will receive an average benefit of around $300 over a 6-month period.
Estimated household savings in excise and GST per tank of fuel:
| | Excise saving per tank | GST saving per tank | Total savings per tank |
Small hatchback ( 40 litre petrol tank) | 8.84 | 0.88 | 9.72 |
Mid-sized SUV ( 60 litre petrol tank ) | 13.26 | 1.33 | 14.59 |
Large 4WD ( 80 litre petrol tank) | 17.68 | 1.77 | 19.45 |
Note: The above table shows the expected change in excise and GST paid, however the exact effect on the cost of a tank of fuel will vary depending on changes in petrol prices.
Fuel tax credits (FTC) provide businesses with a credit for the excise that is included in the price of fuel if the fuel is used in light vehicles travelling off public roads or on private roads, heavy vehicles, or certain non-vehicle settings (machinery, plant and equipment).
- Heavy vehicles on public roads
Heavy vehicles travelling on public roads have their fuel tax credit reduced by the RUC. The Government is not changing the existing RUC arrangements for heavy vehicles travelling on public roads, but the temporary reduction in fuel excise will provide a net benefit for heavy vehicle operators of 4.3 cents per litre from 30 March, compared to current settings.
