State GST pool to slash more fuel costs for Aussie drivers

Australian motorists are set to receive additional relief at the pump, with a further 5.7 cents per litre reduction in fuel prices taking effect immediately. This is backed by the additional GST revenue collected by the Australian states from higher fuel prices.

Where the extra fuel savings come from

The additional 5.7 cents per litre discount is funded by the extra GST revenue generated from higher fuel prices, which is estimated at around $400 million. This relief policy is agreed by all states and territories through the National Cabinet. This new discount runs until June 30, matching the timeline of the federal excise cut.

New combined savings at the bowser

The added fuel relief stacks on top of the federal government’s earlier move, which halved fuel excise from 52.6c/L to 26.3c/L, valid from April 1 to June 30, 2026.

The total fuel price savings are now around 32 cents per litre. For example, a Toyota RAV4 owner wanting to top-fill its 55L tank can save about $17.60.

Also read: Ford Australia rolls out $4,000 fuel card

Fuel prices are already falling

According to the Australian Competition and Consumer Commission, the price drop is already happening. Petrol is down by 16.7c/L (April 1 vs previous day) and diesel by 15.0c/L.

On average, petrol prices had surged to $2.59/L and diesel to $3.21/L before the two cuts offered by the government, as mentioned by the Australian Institute of Petroleum. Australian Prime Minister Anthony Albanese said the full benefit will take a bit longer to show.

Fuel crisis response continues

The federal government has activated Stage 2 (“Keeping Australia moving”) of its fuel security plan and rejected calls for fuel rationing for now. The additional measures include allowing lower fuel standards temporarily (to boost imports) and underwriting fuel shipments to guarantee supply.

The final words

This is one of the largest short-term fuel-relief packages in recent years, driven by a federal excise tax cut and a state-backed GST reduction. This means real savings for Aussie drivers as the Middle East Crisis continues, with even more relief expected to filter through over the coming weeks as the system catches up.