Regan Brown
The cost of fuel per litre in Australia varies due to factors such as global oil prices, exchange rates, and government taxes. As of April 6, 2025, the average price of unleaded petrol in Australia was AUD 179.3 cents per litre, while diesel cost AUD 186.8 cents per litre on average. State-level fuel prices differ, with petrol prices ranging from AUD 178.0 cents per litre in Western Australia to AUD 195.8 cents per litre in the Northern Territory. The Northern Territory also had the highest diesel price, at AUD 210.8 cents per litre. Fuel costs can significantly impact transportation expenses for households, with total transportation costs for Australian households amounting to AUD 150.47 billion in 2024. The rise in fuel costs has influenced consumer behaviour, with an increasing number of people opting for more fuel-efficient cars or electric vehicles.
| Characteristics | Values |
|---|---|
| Current gasoline price per litre | AUD 1.61 |
| Average price for unleaded petrol per litre | AUD 179.3 |
| Diesel price per litre | AUD 186.8 |
| Northern Territory petrol price per litre | AUD 197.8 |
| Queensland petrol price per litre | AUD 192.0 |
| New South Wales petrol price per litre | AUD 190.2 |
| Tasmania diesel price per litre | AUD 194.3 |
| Average cost of petrol in the five largest cities in Australia | 195.6 cents per litre |
| Average gasoline price from 2015-08-17 to 2025-07-28 | AUD 1.48 |
| Minimum gasoline price on 2020-05-04 | AUD 0.98 |
| Maximum gasoline price on 2022-03-21 | AUD 2.13 |
| Average gasoline price worldwide | USD 1.18 |
| Australia's fuel excise tax | AUD 48.8 cents per litre |
| Total transportation costs for households in 2024 | AUD 150.47 billion |
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What You'll Learn
Fuel costs vary across states
Fuel costs in Australia vary across states and are influenced by factors such as global oil prices, exchange rates, and government taxes. As of April 6, 2025, the average price of unleaded petrol in Australia was AUD 179.3 cents per litre, while diesel cost AUD 186.8 cents per litre on average.
State-level fuel prices differ across the country. For instance, in April 2025, petrol prices ranged from AUD 178.0 cents per litre in Western Australia to AUD 195.8 cents per litre in the Northern Territory. The Northern Territory also had the highest diesel prices at AUD 207.9 cents per litre, while Western Australia had the lowest at AUD 184.4 cents per litre.
Fuel prices in Australia have been impacted by various factors, including the COVID-19 pandemic and the rise in fuel-efficient vehicles. During the pandemic in 2020, fuel spending dropped by 30% due to lockdowns and reduced travel. In contrast, fuel prices rose in 2023, with a 7.9% increase in the year leading up to September. This rise in fuel costs contributed to a 16% increase in total household transportation spending.
The variation in fuel costs across Australian states can also be attributed to factors such as competition, transportation costs, fuel demand, and supply chain constraints. For example, the Northern Territory's high fuel prices have been linked to limited competition and high transportation costs. Queensland's fuel prices, on the other hand, are influenced by fluctuations in refinery supply and fuel demand.
Additionally, the type of vehicle owned can significantly impact fuel consumption and costs. Diesel cars and larger vehicles like SUVs tend to be more expensive to refuel. As a result, many Australians are opting for more fuel-efficient cars or electric vehicles to reduce their fuel costs and lower their carbon emissions.
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Fuel efficiency is on the rise
In recent years, there has been a notable shift towards more fuel-efficient cars and electric vehicles. Since 2022, surveys have indicated that more people would opt for a fuel-efficient car or an electric vehicle if fuel prices continued to rise. This trend is reflected in the types of vehicles being purchased, with battery-electric, plug-in hybrid, and hybrid vehicles making up 16.2% of all new vehicles bought in 2023. The percentage of battery-electric vehicles sold in Australia almost doubled in 2023 compared to the previous year, increasing from 3.1% in 2022 to 7.2% in 2023.
This shift towards fuel-efficient and electric vehicles has had a noticeable impact on petrol sales. In 2023, there was a 9% decrease in petrol sales compared to pre-COVID levels. This trend is also influenced by factors such as more people working from home and not commuting as frequently. Additionally, those who drive vehicles with electric, LPG, or other alternative fuel types have reported using less fuel in the past 12 months.
The Australian government is also taking steps to promote fuel efficiency and reduce emissions. Future government policies are focused on implementing fuel efficiency standards, encouraging the use of alternative fuels like electric vehicles, and ensuring transparent and competitive fuel markets. These initiatives aim to support the transition to cleaner energy sources while maintaining energy affordability for consumers.
With the rise in fuel efficiency, there is also a growing awareness of the factors that influence fuel consumption. Driving habits and vehicle choice can significantly impact fuel usage. For example, city driving and driving an SUV tend to result in higher fuel consumption. To improve fuel efficiency, simple measures such as reducing the weight of the vehicle by removing unnecessary items can be effective. As fuel prices continue to fluctuate and environmental concerns become more pressing, it is likely that fuel efficiency will continue to be a priority for many Australians.
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Fuel excise tax
The main fuel tax in Australia is an excise tax, which is levied by the federal government and to which goods and services tax (GST) is added. The GST, currently at 10%, is applied on top of the fuel excise tax. The fuel excise tax is indexed to the consumer price index (CPI) and is adjusted twice a year, on 1 February and 1 August. The Australian Bureau of Statistics (ABS) is responsible for determining and publishing the CPI.
The fuel excise tax rate may also change due to other law changes. In some cases, businesses may be entitled to exemptions or rebates, including tax credits and access to certain excise-free fuel sources. For instance, the Australian Fuel Tax Credits Scheme came into effect on 1 July 2008, and under these changes, all off-road business use of fuel became eligible for subsidies. This benefited businesses that do not run large vehicle fleets but consume large amounts of fuel in business processes (e.g. mining, manufacturing, construction, plant operations).
From April 1 to October 1, the federal budget for 2022 lowered the fuel excise tax by 50% to 22.1 cents per litre for all fuels. As of 1 February 2022, the excise tax on commonly used fuels was $0.442 per litre on unleaded petrol fuel (including standard, blended (E10), and premium grades) and $0.442 per litre on diesel fuel.
As of 28 July 2025, the current gasoline price in Australia is AUD 1.61 per litre or USD 1.05 per litre.
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Global oil prices impact fuel costs
As of 28 July 2025, the gasoline price in Australia is AUD 1.61 per litre, which is higher than the global average of USD 1.20 per litre. The price of fuel in Australia is influenced by various factors, with global oil prices being the most significant factor.
Australia imports most of its crude oil, so shifts in global oil prices have a direct impact on fuel costs in the country. For example, the recent invasion of Ukraine by Russia disrupted global oil supply chains, causing a surge in oil and fuel prices worldwide, including in Australia. Geopolitical tensions, natural disasters, and changes in oil production levels by major exporters like OPEC can also cause fluctuations in crude oil prices, which directly affect fuel prices in Australia.
The exchange rate between the Australian dollar and the US dollar is another critical factor influencing fuel costs in Australia. Since crude oil is traded globally in US dollars, a weaker Australian dollar leads to higher fuel prices, as the cost of importing oil becomes more expensive. Conversely, a stronger Australian dollar can help reduce fuel prices by lowering the cost of imported oil.
Domestic inflation in Australia also plays a role in fuel pricing. Rising inflation erodes purchasing power, increasing the cost of goods and services, including oil refining and transportation. While the Reserve Bank of Australia (RBA) has raised interest rates to combat inflation, the unpredictable geopolitical climate and economic conditions make it challenging to predict the future trajectory of fuel prices.
It's worth noting that fuel prices in Australia can vary across regions. Cities like Sydney, Melbourne, and Brisbane tend to experience price cycles, with prices fluctuating over a month or longer. In contrast, remote areas like the Northern Territory and Western Australia often face higher prices due to logistics and transportation costs.
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Fuel costs impact rental trips
Fuel costs are a significant consideration when planning a rental road trip, and they can significantly impact your travel budget if not managed well. As of July 28, 2025, the gasoline price in Australia was AUD 1.61 per litre or USD 1.05 per litre. This price is higher than the global average of USD 1.20 per litre. With these prices in mind, here are some essential factors to consider when planning a rental trip to help minimise fuel costs:
Fuel Service Options
Rental car companies typically offer various fuel service options, such as prepaying for a full tank and returning the car empty or choosing to refuel the vehicle yourself before returning it. Prepaying for fuel can be convenient, but it may also result in higher costs if you don't use the entire tank. On the other hand, neglecting to refill the tank before returning the car can lead to inflated charges by the rental company, often doubling what you would pay at a local gas station. Therefore, it's crucial to review the fuel service policies carefully before confirming your rental and factor these costs into your budget.
Vehicle Fuel Efficiency
When renting a vehicle, it's essential to consider its fuel efficiency, usually measured in miles per gallon (MPG). A more fuel-efficient vehicle will help you save on fuel costs during your trip. For example, a Greenvans Ford Transit van offers 17-21 MPG, which can help you predict fuel costs more accurately. Additionally, consider renting a hybrid or electric vehicle to further reduce fuel costs.
Route Planning
Planning your route efficiently can also help minimise fuel costs. Use mapping tools to determine the total distance of your trip, including any planned stops or detours. Once you know the total mileage, you can estimate your fuel costs more accurately. Additionally, choosing the most direct and efficient route can save on fuel. Avoid making frequent stops or taking indirect paths unless necessary. Remember that outdoor temperatures can also affect fuel efficiency, so consider this when planning your trip.
Refuelling Strategies
When refuelling during your trip, avoid filling up at stations near major highways, as they tend to have higher prices. Instead, use apps like GasBuddy to find stations with the cheapest fuel prices along your route. Maintaining steady speeds and using cruise control can also help optimise fuel efficiency.
By considering these factors and staying informed about fuel prices and service options, you can effectively manage fuel costs and ensure a more enjoyable rental road trip experience.
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Frequently asked questions
The average price of fuel per litre in Australia as of April 6, 2025, is AUD 179.3 cents for unleaded petrol and AUD 186.8 cents for diesel.
Fuel costs in Australia are influenced by factors such as global oil prices, exchange rates, and government taxes.
Australian fuel prices are slightly below the global average but remain higher than those in countries with significant subsidies or low taxation.
The fuel excise tax in Australia is AUD 48.8 cents per litre, which is lower than in many European nations.
The Northern Territory has the most expensive fuel prices for both petrol and diesel, averaging AUD 197.8 cents per litre for petrol and AUD 210.8 cents per litre for diesel in 2024.
