Tax & price build-up
Fuel tax explained (Australia)
Understand Australian fuel tax: excise on petrol and diesel, GST, how taxes appear in bowser prices, and what drivers can still control through competition.
Reviewed by Petrol Price Near Me Editorial - May 2026
The main taxes on road fuel
Australian bowser prices include federal fuel excise (charged per litre on petrol and diesel for on-road use) and GST applied to the GST-inclusive price at retail.
Excise rates are set in legislation and indexed over time — they do not swing daily with oil markets the way wholesale quotes can.
What tax does and does not explain
When global oil rises, wholesale and retail components often move too — tax is only part of the story. When oil falls, competition and cycle timing determine how much reaches your suburb.
Two stations on the same street can show different prices because of retail margin, brand strategy, and cycle position — not because tax differs per bowser.
What drivers can still control
You cannot change excise at the pump, but you can time fills around the cycle and compare local listings. Use suburb pages to exploit spreads during discount phases.
For policy context and methodology on how we compile prices, see the pricing overview and data methodology pages.
Quick answers
Is diesel excise the same as petrol?
On-road diesel and petrol are both subject to fuel excise under current Australian settings; always check official ATO and Treasury sources for current rates.
Does GST make fuel prices double-tax?
GST applies to the final price consumers pay at retail. The excise component is part of the price build-up described in government fuel tax materials.