The Federal Government has confirmed another month of fuel tax relief, with legislation now in place to reduce fuel excise by 16 cents per litre on both petrol and diesel from 1 July to 2 August 2026.

For traffic management businesses, this is practical cost relief. Fuel is one of the biggest line items in any operational budget, and even a modest reduction at the bowser adds up quickly when you're running multiple vehicles across multiple sites. On a standard 65-litre fill, the saving works out to around $11.

What about heavy vehicles?

The good news extends beyond the servo. The Heavy Vehicle Road User Charge has also been reduced by 16 cents per litre for the same period. If your business runs truck-mounted attenuators, pilot vehicles, or other heavy plant, this reduction is directly relevant to your operating costs.

Why is this happening now?

The extension follows a period of global fuel price instability, driven largely by tensions in the Middle East and disruptions to shipping through the Strait of Hormuz. With the United States and Iran reaching an agreement and the Strait reopening, the Government expects prices to stabilise, but has acknowledged that the recovery will take time.

Rather than pulling the fuel tax cut abruptly, the Government has chosen to taper it off gradually. This one-month extension is designed to give businesses and households a smoother transition back to standard excise settings.

What happens next?

The legislation, known as the Treasury Laws Amendment (Fuel Excise Relief No. 2) Bill 2026, has been agreed across all states and territories through National Cabinet. The measure is estimated to cost around $400 million in total. After 2 August, fuel excise will return to its standard rate, so it is worth factoring that into your budgets and any contracts or pricing that carry into the new financial year.

We will continue to track any further developments and share updates that affect our members.

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Source: New Legislation for Fuel Excise Relief for the Month of July, Treasurer Jim Chalmers, 22 June 2026