The Australian Federal Government has announced a proposed increase in petrol excise as part of its 2026-2027 budget, aiming to address rising fuel prices and fund road infrastructure projects. The move is expected to generate an additional $6.5 billion in revenue for the government, with the increased excise set to be implemented on July 1, 2027. According to the Federal Treasurer, the increased excise will be used to fund critical road projects and support the nation’s growing transportation network.
The proposed increase in petrol excise has been met with mixed reactions from various stakeholders, with some arguing that it will disproportionately affect low-income households and small businesses. In response, the Federal Government has emphasized the need to invest in Australia’s infrastructure and ensure the nation’s continued economic growth. The government has also announced plans to implement a fuel tax credit scheme for certain industries, such as agriculture and mining, to mitigate the impact of the increased excise.
The announcement comes as fuel prices continue to rise across Australia, with the average price of petrol reaching an all-time high of $2.25 per liter in some states. The increased excise is expected to have a significant impact on the nation’s fuel prices, with some estimates suggesting that prices could rise by as much as 20 cents per liter. As the government continues to grapple with the challenges of rising fuel prices, it remains to be seen how the proposed increase in petrol excise will be received by the Australian public.