How State Government Taxes Impact Your Petrol Costs in June 2026

The June 2026 Bowser Shock: What You Need to Know

Australians are bracing for a severe bowser shock. As we navigate through June 2026, a perfect storm of geopolitical tensions and looming tax changes is threatening to drive up the cost of filling up your ute, SUV, or family hatchback. With the Strait of Hormuz conflict severely impacting Middle Eastern oil supplies and the Federal Government's temporary fuel excise cut set to expire on June 30, motorists could see prices spike by up to 40 cents per litre in July.

But while global events like the recent OPEC+ decision to raise output quotas by 188,000 barrels per day grab the headlines, the taxes levied closer to home play a massive role in what you pay at local servos. Let's analyse how federal levies and state government taxes impact your petrol costs, and where you can find the best value right now.

The Anatomy of Fuel Taxes in Australia: Federal vs. State

When you pay for petrol, a significant portion of that price goes straight to the government. Historically, the federal fuel excise has been the largest fixed tax on petrol and diesel. In April 2026, the government temporarily slashed this excise from 52.6 cents to 20.6 cents per litre to combat soaring global oil prices.

However, state governments also have a profound impact on your overall driving costs. While state governments don't directly levy the fuel excise (that's a federal responsibility used to fund national transport infrastructure), they do collect vehicle rego and driver's licence fees. More importantly, state governments receive the GST collected on fuel sales. Because GST is calculated as a percentage (10%) on top of the base price and the excise, higher global fuel prices lead to a GST windfall for the states.

In a rare move this past April, state and territory governments agreed to forgo this increased GST revenue, allowing the federal government to implement a further 5.7 cents per litre reduction. This collaborative effort between federal and state governments is exactly what has kept prices artificially lower during this current global crisis. But with these temporary relief measures ending on June 30, the true cost of fuel will soon return to full force.

Current Fuel Price Trends Across Australia

As we approach the end of the tax relief period, prices are already fluctuating wildly depending on where you live. U91 prices currently range from 147.9 cpl to 166.7 cpl nationally, a difference of 12.7%.

If you're looking for the best value, South Australia is leading the charge. Adelaide currently offers the cheapest prices for 4 different fuel types, making it Australia's most affordable capital city for motorists. In fact, the top 3 cheapest capital cities for Unleaded 91 are currently Adelaide (158.38 cpl), Sydney (162.60 cpl), and the Gold Coast (164.89 cpl).

Conversely, regional and northern motorists are feeling the pinch. Unleaded 91 prices are 10.9% higher in Townsville (175.64 cpl) than in Adelaide (158.38 cpl). Premium fuels show a similar disparity; Premium 98 prices vary significantly across Australia, with Darwin (202.64 cpl) being 10.5% more expensive than Adelaide (183.34 cpl).

Diesel drivers aren't escaping the squeeze either. Diesel is currently 12.5% more expensive in Canberra (218.82 cpl) compared to Newcastle (194.57 cpl).

How to Alter Your Refuelling Behaviour and Save

With prices expected to jump in July, smart refuelling behaviour is your best defence. Here are some expert tips to help you minimise the impact of returning taxes and global shortages:

1. Choose the Right Fuel for Your Vehicle

You don't always need premium fuel if your car doesn't require it. In Sydney, Premium 95 (179.13 cpl) costs 10.2% more than Unleaded 91 (162.6 cpl). Check your owner's manual—if your car runs fine on U91 or E10, make the switch. Brisbane motorists can save 1.4% by choosing E10 (165.28 cpl) over Unleaded 91 (167.63 cpl).

2. Consider Alternative Fuels

If you have a dual-fuel vehicle, now is the time to use it in your favour. LPG (avg. 116.1 cpl) remains 25.1% cheaper than Unleaded 91 (avg. 155.1 cpl), offering significant savings for vehicles with dual-fuel capability. Meanwhile, electric vehicles remain the cheapest option by far; nationally, B20 (avg. 289.9 cpl) is 544.2% more expensive than EV (avg. 45 cpl).

3. Plan Your Trips and Maintain Your Vehicle

Keep your tyres inflated, remove excess weight from your boot, and avoid heavy acceleration on the freeway. Good vehicle maintenance reduces your overall fuel consumption, meaning you pay less tax simply by buying less fuel.

Navigate the June 2026 Price Hike with FuelRadar

As state GST agreements and the federal excise cut expire at the end of this month, the days of government-subsidised fuel are coming to a close. With international markets still recovering, Australian motorists need every advantage they can get.

That's where FuelRadar comes in. Our platform provides real-time fuel prices Australia-wide, helping drivers find the cheapest fuel nearby with just a few taps. Whether you're commuting through the centre of Melbourne or driving the coastal routes of Queensland, you can easily compare prices before you pump.

Available on iOS and Android, FuelRadar is designed to put the power back in your hands. Want to see where the cheapest servos are right now? Check out our interactive map at /map and start saving today.