Fuel retailers have been warned about petrol prices as the government prepares to cut fuel excise duty from 1 July.
The Australian Competition and Consumer Commission (ACCC) has warned it will be closely monitoring fuel prices when the changes come into force.
From July 1, the cut in fuel excise taxes announced after the Iran war will be halved from 32 cents to 16 cents, with the price passed on to motorists from midnight.
ACCC Commissioner Anna Breakey warned the watchdog “expects fuel retailers will not seek to take advantage of these excise duty increases”.
“We will carefully study the dynamics of fuel prices and market behavior both in the run-up to and after the increase in fuel excise taxes,” she said.
“We will not hesitate to take action if retailers make false or misleading statements about price movements or if there is evidence of anti-competitive behavior.”
Treasurer Jim Chalmers said the ACCC’s “really important warning” was aimed at ensuring every cent of the Government’s fuel excise tax cut was passed on to motorists.
“It has been very pleasing to see petrol and diesel prices have come down substantially in recent months,” he said.
“This week, for the first time, we think both petrol and diesel are cheaper than they were before the war in the Middle East started, but people are still under pressure.
“That’s why we’re extending this fuel price cut for another month at a reduced rate to ensure we’re providing the cost-of-living assistance people need and deserve.”
Gasoline and diesel prices fell: “the cheapest in 5 years”
Australian fuel prices have finally returned to levels not seen since the start of the war with Iran, and even the cost of diesel has finally fallen.
For the first time since the conflict began, prices in almost all capital cities fell to pre-war levels, with the exception of Hobart.
In Sydney, the price of diesel is now $1.73 per liter, 2 cents lower than before the conflict.
In Melbourne, diesel costs $1.74 per liter, down 11 cents per liter.
One petrol station in Croydon Park was selling the cheapest petrol the town has seen in five years on Monday. Gasoline was selling for $1.38 and diesel for $1.55.
“We welcome the fall in petrol and diesel prices, but there is still a lot of uncertainty in the Middle East,” Treasurer Jim Chalmers told news.com.au.
“Even with falling fuel prices and inflation, we know Australians are still under pressure. That’s why we’re helping to reduce the cost of living.”
“We have extended fuel excise cuts, cut truck tolls and extended the ACCC’s powers to impose tougher penalties if fuel retailers are found to be ripping off motorists.
Mr Albanese previously confirmed that the fuel excise cut would be extended for another month.
The excise tax was first introduced in April, expires at the end of June, and there is speculation that it could be extended further.
The Prime Minister has confirmed that cuts in fuel excise taxes will continue until July amid a shaky peace deal between the US and Iran to reopen the Strait of Hormuz.
Petrol and diesel prices will be 16 cents per liter cheaper than regular prices in July, expected to save drivers $11 per tank.
The reduction will begin on July 1 and will last until August 2.
Extending fuel excise tax cuts and toll cuts for heavy vehicles would cost approximately $400 million.
In March, Mr Albanese announced a three-month cut in fuel excise duty of 32 cents a liter, as well as cutting the toll for heavy vehicles to zero and delaying the next planned increase by six months.
Total debt is improving
Meanwhile, the latest data from the Australian Financial Management Authority shows gross debt in 2025-26 is almost $200 billion lower than estimated when the Albana government took office.
This suggests the budget will now be better than forecast in the May Budget.
“We’re delivering greater cost of living relief and more help for first home buyers, while delivering better bang for the buck,” Mr Chalmers told news.com.au.
“Reduced debt and smaller deficits are the fruits of our responsible economic management.
“By improving the budget, we were able to find opportunities to cut taxes, help lower the cost of living, strengthen the Medicare program and invest in the future.
“We have made a lot of progress together, the budget is in much better shape than what we inherited, but there is always more work to do.”
Another $63.8 billion in savings and reprioritization in the May budget brought the total since the Albana government was elected to nearly $180 billion.
Gross debt as of June 30, 2026 was $971.4 billion. This result is $197.6 billion below PEFO’s 2022 forecast of $1.169 billion.
It is also $10.6 billion lower than the 2026-27 budget forecast of $982 billion.