Australia Fuel Prices Today: Petrol Hits New Highs Amid Middle East Tensions and Excise Cut

SYDNEY — Australian motorists faced rising fuel prices on Wednesday as global oil costs climbed due to renewed uncertainty in the Middle East, with average unleaded petrol prices hovering around AUD 1.89 per litre nationally and diesel reaching AUD 2.76 per litre in many areas, despite the government's temporary excise reduction providing some relief at the pump.

As of April 22, 2026, the latest data from GlobalPetrolPrices.com showed unleaded petrol at AUD 1.89 per litre (USD 1.35), while diesel stood at AUD 2.76 per litre (USD 1.97) according to mid-April figures. Terminal gate prices released by the Australian Institute of Petroleum indicated wholesale unleaded petrol in major cities like Sydney, Melbourne and Brisbane had eased slightly to the 182-184 cents per litre range on April 22, but retail prices at service stations remained elevated due to retailer margins and regional variations.

The government's decision to halve the fuel excise from 52.6 cents to 26.3 cents per litre, effective from April 1 to June 30, 2026, initially delivered savings of around 20-26 cents per litre at the pump in early April. However, those benefits have been partially offset by surging global oil prices triggered by the ongoing U.S.-Iran tensions and disruptions around the Strait of Hormuz. Brent crude has traded near $95-96 per barrel in recent sessions, pushing wholesale costs higher and limiting the net relief for drivers.

Regional differences remain stark. In Perth and Mandurah, motorists were warned on April 21 to fill up before prices rose on April 22, with average unleaded petrol expected to climb 4.9 cents to 193.9 cents per litre in some areas. In contrast, cheaper spots in regional Queensland and New South Wales offered unleaded as low as 168-179 cents per litre at select independent stations, according to fuel price tracking sites like FuelRadar.

Diesel prices have been particularly volatile. The average national diesel price has climbed back to new highs after the excise cut, with some reports showing premium diesel exceeding 250-259 cents per litre in parts of the country. Heavy vehicle operators and farmers have been hit hardest, as diesel accounts for a substantial portion of transport and agricultural costs. The Australian Trucking Association has called for further government support, warning that sustained high diesel prices could flow through to higher consumer goods prices nationwide.

The Middle East situation has been the dominant driver of recent price movements. The fragile ceasefire between the U.S. and Iran has shown signs of strain, with limited shipping traffic through the Strait of Hormuz and reports of U.S. naval actions contributing to supply concerns. Australia imports a significant portion of its refined fuel, making it vulnerable to global oil price swings. The government has secured additional diesel shipments — around 200 million litres — through the Export Finance Australia scheme to bolster reserves, particularly in regional areas, with arrivals expected by late May or early June.

Prime Minister Anthony Albanese has stated that Australia is "prepared to provide assistance" if needed to keep the strait open, while emphasising the importance of maintaining fuel security. The temporary excise cut was designed as a short-term buffer, but analysts warn that without further global de-escalation, pump prices could climb further once the excise relief ends on June 30.

State-by-state variations add complexity for drivers. In Western Australia, the FuelWatch system provides daily price cycles, helping motorists find cheaper options. In eastern states, apps and websites like the Guardian's fuel price tracker and ABC's monitoring tool show real-time averages and cheapest stations. For example, on April 22, some stations in Canberra and regional New South Wales offered unleaded below 170 cents per litre, while metropolitan Sydney and Melbourne averaged closer to 190-200 cents.

The Australian Competition and Consumer Commission (ACCC) continues to monitor the market for price gouging, noting in its latest weekly report that the excise reduction was largely passed through to consumers in early April, but retailer margins have since widened in some areas. The ACCC has urged motorists to shop around, as price differences of 20-40 cents per litre between nearby stations remain common.

For everyday Australians, the impact is felt at the household level. Higher fuel costs contribute to broader cost-of-living pressures, affecting commuting, freight and grocery prices. Carpooling initiatives and fuel-efficient driving habits have seen modest uptake, but many drivers report sticking to their routines despite the pinch. Electric vehicle adoption continues to grow, yet high upfront costs and charging infrastructure gaps mean petrol and diesel vehicles remain dominant for most households.

Longer-term, Australia's fuel security strategy includes diversifying import sources and boosting domestic refining capacity where possible. The government's additional diesel shipments are intended to provide a buffer against potential supply disruptions, particularly in remote and regional areas that rely heavily on road transport.

As of April 22, the national average for regular unleaded petrol sat around 189 cents per litre, with diesel significantly higher at 276 cents. These figures fluctuate daily and regionally, so motorists are encouraged to check local apps or FuelWatch for the best deals.

The volatility in fuel prices underscores Australia's exposure to global energy markets. While the excise cut provided welcome relief in April, the combination of geopolitical risks and seasonal demand has kept prices elevated. Industry groups are calling for a longer-term strategy to improve fuel security and affordability, including potential incentives for biofuels, hydrogen and greater EV uptake.

For now, Australian drivers face a mixed picture: modest savings from the excise reduction offset by rising global oil costs. As the situation in the Middle East evolves and new shipments arrive, prices may stabilise or shift again in the coming weeks. Motorists are advised to monitor daily movements, plan refuelling strategically and consider fuel-efficient options where possible.

The Australian fuel price story on April 22, 2026, highlights the delicate balance between domestic policy relief and international market forces. With the excise cut providing a temporary buffer and additional diesel supplies on the way, the coming months will test how effectively Australia can shield consumers from global energy shocks while transitioning toward a more sustainable transport future.