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As of June 2, 2025, the price of diesel fuel in Australia is AUD 1.63 per liter or USD 1.05 per liter. This is slightly higher than the world average diesel price, which is USD 1.12 per liter. The price of diesel fuel in Australia has been fluctuating, with a recorded minimum of AUD 1.11 in March 2016 and a maximum of AUD 2.36 in July 2022. Generally, fuel tends to be cheaper in cities and urban areas compared to rural regions, where it can be significantly more expensive. The availability of diesel fuel can also vary across Australia, with petrol being more widely accessible in certain remote areas.
| Characteristics | Values |
|---|---|
| Current Price of Diesel in Australia | AUD 1.63 per liter or USD 1.05 per liter |
| World Average Diesel Price | USD 1.12 per liter |
| Average Diesel Price in Australia from 2015-06-22 to 2025-06-02 | AUD 1.52 per liter |
| Minimum Average Diesel Price in Australia | AUD 1.11 on 2016-03-21 |
| Maximum Average Diesel Price in Australia | AUD 2.36 on 2022-07-04 |
| Petrol Price in Cities and Urban Areas | Generally cheaper than in rural areas |
| Petrol Price in Outback | More expensive |
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What You'll Learn
Diesel is more expensive than petrol in Australia
Diesel fuel in Australia has always been roughly higher than petrol—averaging 5c/L more over the past 15 years. In 2022, diesel prices started the year at about $1.61 per litre and rose to an average of $2.22 per litre across most of Australia's major capital cities. This price is about 50 cents more than unleaded petrol.
There are several reasons why diesel is more expensive than petrol in Australia. Firstly, the demand for diesel is at its highest. Australia imports all its fuel and does not pump its own oil for domestic refining. With the closure of most refineries, the finished product is imported from Singapore. Therefore, when the Australian dollar is low, the cost of imports increases.
Secondly, the price of oil has been trading about 50% higher than the pre-pandemic average. As a result, oil is approximately 60% up on the pre-pandemic baseline when priced in Australian dollars. This is because the Australian dollar has also fallen drastically, causing the price of oil in Australian dollars to remain high.
Additionally, diesel prices tend to be more reflective of the movements of oil prices, which have been volatile due to factors such as the use of diesel instead of gas to generate electricity in Europe.
Despite the higher cost of diesel, it is more fuel-efficient than petrol, and it is used in various industries, including transportation, mining, and agriculture.
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Fuel is cheaper in cities
The price of diesel fuel in Australia is influenced by various factors, including international market prices, competition from imported petroleum products, and local factors such as service station location and competition. While fuel prices in Australia may be higher compared to the United States, a country with politically cheap fuel as the largest producer of oil in the world, it is important to note that within Australia, fuel prices vary between cities and regional areas.
It is commonly believed that fuel prices in regional areas of New South Wales (NSW) are higher than those in urban centres like Sydney, Wollongong, and Newcastle. This belief held true until around 2019, after which fuel price patterns shifted. Since then, fuel prices in Sydney have generally been higher than in many regional locations. However, it is still considered that fuel is cheaper in cities and urban areas compared to the countryside or rural areas.
There are several reasons why fuel prices may be lower in cities. One factor is the presence of independent retailers, who typically have more flexible pricing models and charge less. Independent operators are more prevalent in cities like Sydney, Central Coast, Newcastle, and Wollongong, contributing to more competitive pricing. Local competition among retailers in cities also plays a role in driving down prices. Additionally, global factors such as geopolitical events and supply and demand influence the price of fuel that arrives in Australia, and federal government taxes add extra costs.
Motorists can take advantage of fuel price apps and websites to find the lowest fuel prices in their area. The Australian Competition and Consumer Commission (ACCC) provides buying tips and charts for the five largest cities: Sydney, Melbourne, Brisbane, Adelaide, and Perth. These tips are updated multiple times a week to help motorists make informed decisions about when and where to purchase fuel.
While fuel prices may vary across different regions, it is generally recommended to buy fuel whenever possible when venturing into the Australian outback, as fuel costs tend to be significantly higher in those remote areas.
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Diesel engine parts are hard to find in remote areas
The price of diesel fuel in Australia varies depending on location. Generally, it is cheaper to buy fuel in cities and urban areas, with fuel in the countryside and the Outback being more expensive.
Diesel engine parts can be challenging to find in remote areas of Australia, which is an important consideration when deciding between a diesel or petrol engine. While diesel engines offer better mileage per litre, diesel fuel is not as readily available in rural areas, and parts for diesel engines can be harder to come by.
Engine Australia, one of the country's leading suppliers of aftermarket diesel engine parts, offers a wide range of pistons, gaskets, cylinder heads, valves, bearings, and timing gear products. They also provide specialised and hard-to-find parts through their Diesel Power Parts® brand. Additionally, Diesel and Industrial Engine Spares is an Australian distributor for Interstate-McBee, a company with over 60 years of experience in the diesel parts industry. They offer engine parts for various diesel engine brands and provide a range of basic engine rebuild kits, service kits, and accessories.
However, despite the presence of these suppliers, the availability of diesel engine parts in remote areas of Australia remains a challenge. This is especially true when compared to the ease of accessing parts for petrol engines, which are more commonly used and readily available in rural regions. As a result, those in remote areas with diesel engines may experience longer wait times and higher costs when sourcing parts, making it a crucial consideration when choosing an engine type.
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Diesel price in AUD and USD
The price of diesel fuel in Australia is influenced by various factors, including international benchmark prices, competition from imported petroleum products, and the cost of importing and refining crude oil. While the exact prices in AUD and USD are not readily available, some sources provide insights into the relative affordability of diesel in Australia compared to other countries.
According to the Australian Institute of Petroleum (AIP), Australia has among the lowest petrol and diesel prices of all OECD countries. The AIP publishes weekly reports on diesel prices in Australia, helping analysts and the community understand the key market factors influencing prices. These reports include information on international benchmark prices, such as the Singapore price of diesel (Gasoil 10ppm sulfur) and market prices for Tapis and North Sea Dated (Brent).
The availability and cost of diesel in different regions of Australia can vary. Sources indicate that diesel fuel is generally cheaper in cities and urban areas compared to rural or outback regions. This disparity in pricing across the vast Australian landscape is an important consideration for travelers and those residing in remote areas.
When deciding between a diesel or petrol engine in Australia, it's worth noting that diesel fuel tends to be slightly more expensive than petrol. However, diesel engines typically offer better fuel efficiency, providing more kilometers or miles per liter or gallon. Additionally, it's important to consider the availability of diesel fuel and engine parts in rural areas, which may be limited in remote regions of the country.
While the exact prices in AUD and USD are not explicitly mentioned, the information provided offers valuable insights into the relative affordability, availability, and considerations surrounding diesel fuel costs in Australia.
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Sky-high fuel prices are driving up the cost of living
As of June 2, 2025, the price of diesel fuel in Australia is AUD 1.63 per liter, which is USD 1.05 per liter. This is slightly higher than the world average diesel price, which stands at USD 1.12 per liter. The price of diesel fuel in Australia has been on an upward trajectory, with a maximum price of AUD 2.36 recorded on July 4, 2022.
Sky-high fuel prices are certainly contributing to the rising cost of living in Australia. The price of petrol and diesel has skyrocketed in recent weeks, causing consumers to feel the financial strain. While there are various factors influencing fuel prices, such as international oil prices and supply chain issues, the end result is a significant impact on the cost of living for Australians.
Fuel is more expensive in rural and outback areas, and diesel is generally more costly than petrol. This can be a challenge for those living in remote regions, as diesel engine parts may also be harder to come by. The fluctuating availability and pricing of diesel fuel in Australia can make it a less attractive option for consumers, especially when compared to the relatively cheaper and more accessible petrol fuel.
The high cost of diesel fuel has wide-ranging implications. For example, it can influence the types of vehicles people choose to purchase, with petrol engines often being favored due to the typically lower price of petrol. Additionally, the cost of goods and services that rely on diesel-powered transportation or machinery may increase, as businesses pass on the higher fuel costs to consumers.
The Australian government and fuel industry need to address these concerns to alleviate the financial burden on citizens and businesses. Potential solutions may include investigating ways to stabilize fuel prices, improving the availability of diesel fuel in rural areas, or exploring alternative energy sources to reduce reliance on diesel and petrol. In the meantime, Australians will continue to feel the impact of sky-high fuel prices on their daily lives and budgets.
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Frequently asked questions
As of June 2, 2025, the price of diesel fuel in Australia is AUD 1.63 per liter or USD 1.05 per liter.
The world average diesel price is USD 1.12 per liter, making diesel fuel in Australia slightly more expensive than the global average.
Diesel fuel tends to be more expensive than petrol in Australia. However, diesel engines are more fuel-efficient, so you may get more kilometers per liter with diesel.
No, fuel prices in Australia vary by region. In general, fuel tends to be cheaper in cities and urban areas than in rural or outback regions.
