Australian transport industry groups are calling for an extension of the federal fuel excise discount as the current cut ends in August 2026 [1].
The request comes as the sector warns that the expiration of the discount will increase operating costs, which will likely be passed on to consumers. This occurs during a period of significant cost-of-living pressures across the country.
Industry representatives said that the end of the tax relief will lead to immediate price hikes at the pump. According to reports, drivers are set to pay an extra 32 cents per litre of petrol [2] within weeks of the discount ending.
Transport groups said the additional cost creates a ripple effect throughout the supply chain. Higher fuel expenses for trucking and logistics companies often result in increased prices for groceries, and other essential goods — a burden that falls on the general public.
These groups are urging the federal government to intervene and extend the relief to stabilize prices. They said the extension is necessary to prevent a sudden spike in transport overheads that could destabilize current market rates.
The government has not yet announced a decision regarding the extension of the excise cut. However, the transport sector said the urgency of the matter requires a prompt response to allow businesses to plan their budgets for the remainder of the year.
“Drivers are set to pay an extra 32 cents per litre of petrol”
The expiration of the fuel excise cut represents a direct increase in the cost of doing business for the logistics sector. Because transport is a primary input for almost all physical goods, this tax increase may act as a catalyst for broader inflation, offsetting other government efforts to curb the cost of living.
