The Fuel Price Crisis & Your Business
Rising fuel costs are hitting Australian businesses hard. Here’s what you need to know about the fuel excise, available relief, and how to protect your bottom line.
What’s Happening with Fuel Prices?
Petrol prices across Australia have surged sharply in early 2026, driven by global tensions — particularly disruptions linked to conflict in the Middle East — which have pushed international oil and refined fuel costs higher. For many Australian businesses, fuel is a significant and often unavoidable operating cost.
In response, the Federal Government announced a temporary fuel excise relief package on 30 March 2026, halving the fuel excise duty to provide immediate cost relief at the pump.
Current Fuel Excise Rates
| Fuel Type | Standard Rate | Relief Rate (Apr–Jun 2026) |
|---|---|---|
| Petrol | 52.6 cents/litre | 26.3 cents/litre |
| Diesel | 52.6 cents/litre | 26.3 cents/litre |
Temporary relief: 1 April – 30 June 2026. Heavy road user charge also removed. Budget cost: $2.55 billion.
Government Fuel Relief Package
Halved Fuel Excise
Cut from 52.6c to 26.3c per litre for petrol and diesel. Effective 1 April – 30 June 2026.
Road Charge Removed
Temporary removal of the heavy vehicle road user charge for transport and logistics operators.
ATO Fuel Response
Streamlined access to temporary payment plans for businesses impacted by high fuel prices.
Which Industries Are Hit Hardest?
Transport & Logistics
Fuel is often the single largest operating cost. Small increases compound across fleets.
Construction & Trades
Heavy machinery and material transport rely on diesel. Rising costs squeeze tight margins.
Agriculture
Farm equipment, crop transport, refrigerated storage. Regional businesses face higher prices.
Small Business & Retail
Delivery costs, commuting, and supply chain increases flow through to everyday operations.
Fuel Tax Credits: Are You Claiming What You’re Entitled To?
Many Australian businesses are eligible for fuel tax credits but don’t claim them — or don’t claim the full amount.
You may be eligible if you use fuel for:
- Machinery, plant, or equipment (generators, forklifts, agricultural equipment)
- Heavy vehicles over 4.5 tonnes GVM on public roads
- Light vehicles on private roads (farms, mine sites)
- Heating, cooling, or power generation for business premises
- Vessels and watercraft used for business
How to claim:
- Register for fuel tax credits with the ATO
- Keep records of fuel purchases and eligible business use
- Claim on your BAS (Business Activity Statement)
- Use the correct rate from the ATO fuel tax credit rate tables
LMS Advisory Tip: During the temporary excise reduction (April–June 2026), fuel tax credit rates also change. Claiming at the wrong rate can trigger ATO scrutiny. Our team can ensure your BAS claims are accurate and maximised.
Strategies to Manage Fuel Costs
Claim Fuel Tax Credits
Review eligibility and ensure you’re claiming every dollar on your BAS.
Budget for Volatility
Build fuel price fluctuations into cash flow forecasts. Scenario plan for different price levels.
Review Contracts
Add fuel surcharge clauses or adjust pricing to account for cost increases.
Optimise Fleet
Review vehicle efficiency, maintenance, and route planning. Small gains compound.
ATO Payment Plans
Temporary fuel response payment plans available. Ask us if this could help your cash flow.
Energy Transition
Explore electric or hybrid fleet options. Government incentives may offset transition costs.
Resources
- ATO — Fuel Tax Credit Rates (Business)
- ATO — Fuel Response & Payment Plans
- Parliamentary Budget Office — Fuel Taxation
- ACCC — Fuel Excise & Price Monitoring
Let’s Review Your Fuel Cost Exposure
Whether it’s maximising fuel tax credits, modelling cost impact, or adjusting your cash flow strategy — LMS Advisory is here to empower your next move.
