ACCC warns retailers to pass on excise cuts

Date

2 April 2026

Topics

Petrol and fuel The ACCC is warning fuel retailers they should fully pass on all fuel excise cuts by the Federal Government as quickly as possible.

It was announced today that under a deal between States and Territories and the Federal Government, fuel excise would reduce by about 5.7 cents per litre (cpl), in addition to the cut in fuel excise of 26.3 cpl, which came into effect on 1 April.

In addition, the ACCC has today served notices on several businesses operating across SA, WA, QLD and the Northern Territory requiring them to justify sizable ‘fuel surcharges’ imposed on deliveries to remote areas.

Fuel excise reductions must be passed on

The ACCC is continuing to monitor fuel prices daily in capital cities and more than 190 regional locations and will closely analyse price movements following the government’s cut in the fuel excise from 1 April 2026, and the subsequent cut.

“We are pleased to see that already several retail sites have dropped fuel prices and passed on savings to customers in response to the initial cut in fuel excise on 1 April,” ACCC Chair Gina Cass-Gottlieb said.

“Earlier this week we made it very clear to the major fuel companies that we expect to see them pass on the full cut in the fuel excise to consumers without delay.” Letter to fuel companies about the excise reduction (PDF 151.04 KB)

“We expect the same for the further cut in the excise under the proposal announced today, so that retail petrol and diesel prices should reduce initially by about 26.3 cpl and ultimately by 32 cpl, from what they would otherwise have been,” Ms Cass-Gottlieb said.

Latest fuel monitoring report data on the excise cut

The ACCC monitors retail fuel prices, as well as changes in underlying benchmark prices, which continue to be volatile and also influence retail price levels.

Figure 1 - Daily average retail petrol prices in the 5 largest cities

Source:    Informed Sources data.

Figure 2- Daily average retail diesel prices in the 5 largest cities

Source:    Informed Sources data.

In almost all city and regional locations, average retail petrol and diesel prices decreased following the excise cut. The size of the reductions varied widely between locations, with reductions in some regional locations being more than 20 cpl, while others did not change significantly on the first day of the fuel excise cut.

On April 1, across the five largest cities, daily average retail petrol prices were 16.7 cpl lower and daily average retail diesel prices were 15.0 cpl lower, compared with the previous day.

For regular unleaded petrol, average prices reduced by between 7.2 cpl and 25.4 cpl, with the greatest reduction in Darwin and smallest reduction in Perth.

For diesel, average prices reduced by between 9.1 cpl and 19.5 cpl, with the greatest reduction in Adelaide and the smallest in Perth.

Separate to the impacts of the excise cut, in the week to the end of March, international refined fuel prices continued to be volatile. More details are available in our weekly fuel price monitoring report this afternoon.

“Many service stations raised fuel prices relatively quickly around the start of the conflict in the Middle East, in many cases without usual lags from the turnover of fuels in stock,” Ms Cass-Gottlieb said.

The ACCC understands that rather than basing retail prices on the cost of fuel currently in their storage as they usually would, some retailers moved to pricing based on what it would cost them to restock at the current prices.

“Fuel companies know that consumers expect them to pass on the excise cut with similar haste or risk losing customers,” Ms Cass-Gottlieb said.

“While we recognise some areas have had supply or demand challenges, we encourage motorists to shop around where possible and reward those service stations that pass on the reductions.”

In addition, the ACCC is concerned about reports that some fuel retailers increased their retail fuel price soon after the Government initially announced the fuel excise would be reduced, before then cutting prices.

“We are concerned that pricing changes may be used to obfuscate a failure by retailers to fully pass on the reduction in the excise and, if that is the case, we will take appropriate enforcement action,” Ms Cass-Gottlieb said.

Under the Australian Consumer Law, businesses are prohibited from engaging in misleading conduct or making misleading representations, including false or misleading statements about prices. This includes false or misleading statements about price savings and discounts.

“Increasing prices shortly before offering a "discount" can be misleading conduct under the Australian Consumer Law,” Ms Cass-Gottlieb said.

Businesses must substantiate fuel surcharges imposed

Today the ACCC has sent legal notices known as substantiation notices to some distributors supplying goods or services to remote and regional Australia, asking them to substantiate the representations they have made about their reasons for imposing sizable fuel surcharges or levies.

These types of surcharges are being widely justified on the basis that the suppliers’ costs have increased due to the impact of rising oil and fuel prices in the supply chain.

The businesses have three weeks to respond to the ACCC and to substantiate the representations they have made about ‘fuel surcharges’.

“We have seen an increase in complaints from consumers and small businesses about the introduction or increase of fuel surcharges, including surcharges of more than 70 per cent imposed on small businesses servicing remote communities,” Ms Cass-Gottlieb said.

The ACCC recognises that businesses have experienced cost increases due to higher fuel prices. However, we are investigating whether the size of some of the surcharges, presented as due to rising fuel costs, exceed those increases.

Fuel surcharges have also been reported in the cities including as levies to consumers at cafes and restaurants, as well as travel companies.

“Businesses must not mislead consumers about their prices. If a business is going to impose a surcharge or levy and represent that it is directly related to the high fuel costs, then the business must be able to substantiate and justify those representations,” Ms Cass-Gottlieb said.

“The ACCC will take appropriate action against breaches of Australian Consumer Law, such as misleading consumers about surcharges.”

Consumers or small businesses are encouraged to report concerns about businesses imposing large fuel surcharges to the ACCC.

The ACCC is also concerned these surcharges or levies are being used by some businesses or industry groups to increase prices across the board.

“Businesses are reminded that they need to make decisions about prices and levies independent of their competitors. Coordination of prices by competitors is a serious breach of competition laws,” Ms Cass-Gottlieb said.

These matters are at an early stage, and the ACCC will not provide further detail about these matters at this stage.

Release number

31/26

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