Fuel Excise Cut Extended: What WA Drivers Need to Know

If you've been watching fuel prices at the bowser with a grimace, there's some relief — but don't get too comfortable. The federal government has extended its temporary fuel excise cut beyond its original June 30 expiry date, giving motorists a bit more breathing room heading into August.

The New Numbers — and the Catch

From July 1, the excise cut drops from 26.3 cents per litre to 16c/L. That's a smaller saving than what drivers had been enjoying since April, but it's still meaningful — particularly if you're doing long runs between Perth and regional WA, or running a diesel ute as a daily driver.

Prime Minister Anthony Albanese put the saving at around $11 on a 65-litre tank. For context, the Ford Ranger — Australia's best-selling ute and an extremely common sight on WA roads — carries an 80-litre tank, so the real-world saving there is closer to $13. The Toyota RAV4, another top seller, has a 55-litre tank, putting the saving at around $9 a fill.

The catch: the discount is currently scheduled to disappear entirely from August 1, when the full 52.6c/L fuel excise returns. Albanese hasn't ruled out a further extension, citing ongoing tensions between the US and Iran affecting crude oil shipments through the Strait of Hormuz — but nothing is locked in beyond July 31.

What It Means If You're Buying a Car Right Now

For anyone currently shopping for a new vehicle, the fuel excise situation is worth factoring into your running cost calculations — especially in WA, where distances are longer and public transport isn't exactly an alternative for most people outside the inner Perth suburbs.

If fuel prices spike again when the excise cut expires in August, that changes the sums on a few things: how much car you can actually afford to run month-to-month, whether a diesel, petrol, or hybrid makes more sense for your situation, and whether an electric vehicle deserves a closer look.

On the EV front, record fuel prices have already been shifting buyer behaviour nationally. The Tesla Model Y became the first electric vehicle to top Australia's overall monthly sales charts in May, and EVs hit a record 19.9 per cent market share that month — up 111.6 per cent on May 2024. In Perth, where most daily driving is predictable suburban or highway commuting, the case for an EV gets stronger every time petrol creeps back above $2 a litre.

The Diesel Picture for Tradies and Regional Drivers

The government also extended its cut to the Heavy Vehicle Road User Charge. After being reduced to zero from April 1, it will increase to 16c/L — half its standard 32.4c/L rate — until August 1. For WA tradies running diesel utes or vans, or anyone hauling gear to regional and rural areas, the partial relief is welcome even if it's not the full cut.

Ford has been capitalising on the fuel cost conversation by bundling fuel cards worth up to $5000 with some Ranger purchases, and offering $4000 discounts on the updated MY26.5 Ranger. If you're in the market for a ute, those deals are worth stacking against the excise picture when you're working out your total cost of ownership.

The bottom line: enjoy the savings while they last, keep an eye on August 1, and if you're planning a vehicle purchase in the next few months, factor in what your fuel bill looks like once the full excise returns.