Australian motorists are facing a significant increase at the bowser, with the Australian Competition and Consumer Commission (ACCC) confirming a sharp rise in average retail petrol and diesel prices across the nation in July 2026. The surge is primarily attributed to the partial restoration of the federal fuel excise and escalating international crude oil prices, exacerbated by ongoing geopolitical tensions.

In its 19th weekly fuel price monitoring report, released on 17 July 2026, the ACCC detailed that the daily average retail petrol price across Australia’s five largest cities – Sydney, Melbourne, Brisbane, Adelaide, and Perth – reached 169.6 cents per litre by 15 July. This represents an 18.1 cents per litre increase compared to 30 June 2026. For diesel, the impact was even more pronounced, with the daily average retail price climbing to 192.6 cents per litre, up 19.1 cents per litre over the same period.

“Average retail petrol prices in capital cities and most regional locations were relatively stable over the last week, while diesel prices generally increased.”

The Double Whammy: Excise and Global Oil

The primary driver behind this recent jump is the partial restoration of the federal fuel excise, which saw 16 cents per litre added back to the tax from 1 July. When the associated Goods and Services Tax (GST) is included, the total potential impact of this tax change alone is approximately 17.6 cents per litre.

This domestic policy shift coincides with a volatile international crude oil market. Rising global oil prices and disruptions to energy supply routes, stemming from conflicts in the Middle East and attacks on key infrastructure, have pushed up the cost of refined fuels. The ACCC’s report noted that weekly average international refined petrol (Mogas 95) prices were slightly higher in the week to 15 July, reaching approximately 92 Australian cents per litre, a 3% increase from the prior week. Refined diesel (Gasoil 10 ppm) prices surged further, up roughly 13% to around 120 Australian cents per litre.

Wholesale Prices and Regional Impact

The impact of these factors has already been observed at the wholesale level. Between 30 June and 15 July, average indicative wholesale (terminal gate) prices for petrol in the five largest cities increased by as much as 17.4 cents per litre. For diesel, the wholesale increase was even steeper, rising by as much as 28.7 cents per litre over the same period.

Regional areas have not been spared. By 15 July, the daily average retail price across monitored regional locations was 178.7 cents per litre for petrol and 199.0 cents per litre for diesel. Compared to 30 June, average regional retail petrol prices increased by 10.0 cents per litre, while diesel prices rose by 13.4 cents per litre.

Some regional locations experienced even more significant hikes. Approximately 84% of all monitored regional locations saw average petrol price increases of up to 16 cents per litre, with 14 locations recording increases exceeding the 17.6 cents per litre excise impact. For diesel, around 58% of regional locations saw increases up to 16 cents per litre, and 61 locations had average diesel price increases over 17.6 cents per litre.

Broader Economic Implications

The ripple effects of these higher fuel costs are expected to extend beyond individual motorists. Transport companies and businesses heavily reliant on diesel face increased operating costs, which could contribute to higher prices for goods and services across the economy. Analysts warn that prolonged instability in global oil markets could keep fuel prices elevated, placing additional pressure on inflation.

This surge comes after a period where average retail petrol prices in the five largest cities were 1.3 cents per litre lower on 15 July compared to 20 February 2026 (approximately one week before the escalation of conflict in the Middle East). In stark contrast, average retail diesel prices were 16.0 cents per litre higher than on 20 February.

What Motorists Can Do

With fuel prices remaining volatile, Australian motorists are encouraged to monitor local pricing closely. Utilising fuel price comparison apps and websites can help identify the cheapest options in their area. For those considering a long-term strategy to mitigate rising transport costs, the current climate of elevated petrol and diesel prices further underscores the financial benefits of transitioning to electric vehicles. Such a move can significantly reduce household transport expenditure, especially when paired with home solar charging. For more information on optimising EV charging with renewable energy, consider reading our guide on Optimise EV Charging with Solar This Winter 2026: Max Savings Guide.

The Australian government has indicated that 3.2 billion litres of fuel are expected to arrive over the next four weeks to bolster national fuel supplies and alleviate concerns over shortages. However, the immediate outlook for Australian drivers remains one of higher costs at the pump.