Fuel Excise Halved but Diesel Still Above $3 in Logan
The federal government has cut the fuel excise by 26 cents per litre for three months, but Logan drivers are unlikely to see prices drop below $2.80.
What Changed
From 1 April, the fuel excise was cut from 52.6 cents per litre to 26.3 cents per litre for three months, in response to surging prices triggered by conflict in the Middle East. The package also includes a reduction in the heavy vehicle road user charge to zero, easing costs for the trucks that deliver goods across Logan and South East Queensland.
Why Diesel Is Still Above $3
The excise is charged at the terminal gate before fuel reaches service stations, meaning most fuel currently in tanks was taxed at the higher rate. Prices are expected to fall once fuel leaving terminals from 1 April works its way through the supply chain.
Diesel prices had already climbed to a national average of $3.03 per litre, with some areas hitting $3.29. A 26-cent cut will not bring that below $2.80, and that assumes every cent is passed on.
The NRMA warned the cut would make little difference, noting petrol prices had risen about 33 cents per litre in the two weeks before the announcement alone.
Logan Impact
Many Logan residents commute long distances by car and rely on diesel utes and vans. A driver filling a 50-litre tank would save about $13 if the full reduction is passed on.
For tradies, couriers and families doing the Logan-to-Brisbane commute daily, that covers about one coffee and a sandwich.
What Happens on 1 July
The excise is legislated to revert to its full rate on 1 July 2026, and the road user charge will also be reinstated. The next scheduled annual increase has been deferred by six months.
Australia has moved to Level 2 of its national fuel security plan, reflecting emerging pressure but no immediate nationwide shortages. Higher stages could include targeted demand reduction or prioritising fuel for essential services.
What to Do
RACQ is advising drivers to use its fuel app to compare local prices and avoid stations sitting at the top of the price cycle. The Queensland Government fuel price reporting website also provides live data for stations across Logan.
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