What has the Government announced?
The Australian Government has announced that the temporary fuel excise cut will continue for an additional month, from 1 July to 2 August 2026.
During this period, the fuel excise on both petrol and diesel will remain 16 cents per litre lower than the standard rate. For many motorists, this is expected to reduce the cost of filling a typical 65-litre fuel tank by around $11, depending on local fuel prices.
The Government has also announced a matching 16 cent reduction in the Heavy Vehicle Road User Charge for the same period. This measure is intended to help reduce operating costs for Australia’s trucking industry while the fuel market continues to stabilise.
The extension is designed as temporary cost-of-living relief while fuel prices continue to recover from recent global supply disruptions. Motorists and businesses should continue to see the lower excise reflected in fuel prices at service stations during the extension period.
Will Fuel Prices Actually Fall?
The temporary reduction in fuel excise should help lower the price motorists pay at the bowser, but the final price of petrol and diesel can still vary significantly between service stations and regions.
Wholesale fuel prices are influenced by several factors, including global oil prices, refining costs, exchange rates and fuel supply. As these costs change, retail fuel prices may also rise or fall, regardless of changes to the fuel excise.
Competition also plays an important role. Service stations in highly competitive areas often adjust their prices more aggressively, while prices in regional or remote locations may remain higher due to transport and operating costs.
For these reasons, two service stations in the same town can sometimes have noticeably different fuel prices on the same day.
While a reduction in fuel excise can provide immediate savings, motorists can often reduce their overall fuel costs even further by maintaining their vehicles, driving efficiently and ensuring the fuel they use is clean and of high quality.
How Can Motorists Reduce Fuel Costs Even Further?
Lower fuel prices are always welcome, but getting the most value from every tank doesn’t stop at the bowser. Many of the factors that affect fuel consumption are within a driver’s control, including vehicle maintenance, driving habits and fuel quality.
Keeping your engine properly serviced, maintaining correct tyre pressures and avoiding unnecessary weight can all help improve fuel efficiency. Just as importantly, clean fuel injectors and an efficient fuel system help your engine burn fuel more effectively, reducing wasted fuel and supporting smoother performance.
Using a quality fuel additive can also help maintain the condition of your fuel system. DXP Premium Fuel Additive is formulated to improve fuel quality, clean injectors, remove moisture and help control microbial growth in diesel fuel. By promoting cleaner combustion and helping fuel systems operate efficiently, it supports improved engine performance, better fuel economy and reduced emissions.
While no product can overcome poor vehicle maintenance or driving habits, combining good maintenance with high-quality fuel and fuel system care can help motorists get the maximum value from every litre of petrol or diesel.
How DXP Premium Fuel Additive Helps
DXP Premium Fuel Additive has been trusted by Australian farmers, transport operators and motorists for more than 40 years. Suitable for both petrol and diesel engines, it helps maintain fuel quality and supports cleaner, more efficient engine operation.
Key benefits include:
- Improves fuel quality to help your engine perform at its best.
- Cleans fuel injectors and helps keep the fuel system free from harmful deposits.
- Removes moisture from fuel, helping to reduce corrosion and fuel contamination.
- Helps control microbial growth (diesel bug) in diesel fuel during storage.
- Promotes cleaner combustion, supporting smoother engine operation and reduced exhaust emissions.
- Supports improved fuel economy by helping your engine burn fuel more efficiently.*
- Australian made and family owned, with a proven track record across passenger vehicles, 4WDs, trucks, agricultural equipment, marine engines and generators.
*Fuel economy improvements can vary depending on the vehicle, engine condition, maintenance and operating conditions.
Frequently Asked Questions
When does the fuel excise cut start?
The temporary extension of the fuel excise cut begins on 1 July 2026 and is scheduled to run until 2 August 2026. During this period, the fuel excise on petrol and diesel will remain 16 cents per litre below the standard rate.
How much will I save per tank?
The exact saving depends on the size of your fuel tank. Based on the Government’s estimates, a typical 65-litre tank could cost around $11 less to fill while the temporary fuel excise cut is in place.
Does the fuel excise reduction apply to diesel?
Yes. The temporary cut applies to both petrol and diesel fuel, helping motorists, businesses and transport operators reduce their fuel costs during the extension period.
Will petrol prices keep falling?
Fuel prices are influenced by many factors, including global oil prices, exchange rates, wholesale fuel costs and competition between service stations. While the fuel excise cut lowers one component of the pump price, future fuel prices will continue to change as market conditions evolve.
Does using a fuel additive still make sense when fuel is cheaper?
Yes. The price of fuel and the quality of fuel are two different things. While lower fuel prices reduce the cost of filling up, maintaining a clean and efficient fuel system can still help your vehicle perform at its best. A quality fuel additive can help improve fuel quality, clean injectors, remove moisture and support cleaner combustion, regardless of the price at the bowser.
Can DXP Premium Fuel Additive be used in both petrol and diesel engines?
Yes. DXP Premium Fuel Additive is suitable for both petrol and diesel engines. It is used in passenger vehicles, 4WDs, trucks, agricultural equipment, marine engines, generators and many other fuel-powered applications.
Is DXP Premium Fuel Additive Australian made?
Yes. DXP Premium Fuel Additive is Australian made and family owned and has been trusted by motorists, farmers and transport operators for more than 40 years.
Making the Most of Every Tank
The temporary fuel excise cut is welcome news for Australian motorists and businesses, helping reduce the cost of filling up during July. While lower fuel prices provide immediate savings, getting the best value from every litre also comes down to maintaining your vehicle and using high-quality fuel.
For more than 40 years, DXP Premium Fuel Additive has helped Australian drivers, farmers and transport operators improve fuel quality, protect fuel systems and support cleaner, more efficient engine performance. Whether fuel prices are high or low, maintaining a clean and efficient fuel system can help you get the most from every tank.