Australian motorists experienced a significant surge in fuel costs throughout August 2026, with the average retail petrol price across the five largest cities climbing by 8% over the month to hit $2.06 per litre. The latest ACCC Weekly Fuel Price Monitoring Report, published on 28 August 2026, attributes these increases primarily to the full restoration of the fuel excise and rising international benchmark prices.
The report, which covers price movements up to 26 August 2026, detailed that average petrol prices in Sydney, Melbourne, Brisbane, Adelaide, and Perth collectively rose by 2% in the preceding seven days. Diesel prices saw an even sharper increase, averaging $2.50 per litre across these cities, reflecting a 3% jump in the same week.
This latest increase follows the resolution of the federal fuel excise decision, which saw the remaining 16 cents per litre (cpl) relief expire on 2 August 2026, returning the excise to its full rate of 53.7 cpl from 3 August. While the initial impact of the excise restoration was partly masked by falling international benchmarks in early August, the ACCC’s monitoring confirms that underlying crude prices and the full excise have now pushed retail costs upwards.
“Australian retail fuel prices have increased during August in line with the full restoration of the fuel excise and movements in international benchmark prices.”
For many households and businesses, this represents a tangible blow to their budgets, compounding existing cost-of-living pressures. The average gasoline price in Australia on 24 August 2026 was AUD 2.02 per litre, an 8% increase from AUD 1.87 per litre one month prior. This consistent upward trend underscores the sensitivity of the Australian market to both domestic policy adjustments and global oil dynamics.
State-by-State Breakdown: August 2026 Fuel Prices
The ACCC’s report provides a detailed snapshot of retail fuel prices across major capital cities as of 26 August 2026. While the national average for the five largest cities was $2.06/L for petrol and $2.50/L for diesel, variations were observed:
| City | Petrol Price (AUD/L) | 7-Day Change (%) | Diesel Price (AUD/L) | 7-Day Change (%) |
|---|---|---|---|---|
| Sydney | $2.03 | +3% | $2.49 | +3% |
| Melbourne | $2.07 | +3% | $2.53 | +3% |
| Brisbane | $2.03 | +2% | $2.53 | +3% |
| Adelaide | $2.04 | +2% | $2.50 | +3% |
| Perth | $2.12 | +2% | $2.46 | +2% |
| Canberra | $2.10 | +3% | $2.62 | +5% |
| Hobart | $2.06 | +2% | $2.55 | +3% |
| Darwin | $2.11 | +1% | $2.54 | +2% |
Source: ACCC Weekly Fuel Price Monitoring Report, 28 August 2026.
Perth recorded the highest petrol prices among the five largest cities at $2.12/L, while Melbourne and Brisbane saw the highest diesel prices at $2.53/L. Canberra, which is not included in the ‘5 largest cities’ average, registered the highest diesel price overall at $2.62/L with a 5% weekly increase.
Impact of Excise Restoration and Global Markets
The full restoration of the fuel excise, which had been temporarily halved to 26.3 cpl on 1 April 2026, was a key driver of the August price hikes. This policy change directly added 16 cpl back to the cost of fuel. Concurrently, international benchmark prices for refined fuels have also shown upward movement, further contributing to the retail price increases observed across the country.
Motorists are now contending with prices significantly higher than pre-conflict levels in February 2026, with average retail petrol prices for the five largest cities 35 cpl higher, and retail diesel prices a substantial 74 cpl higher.
Consumer Strategies Amid Rising Costs
With no immediate relief in sight for fuel prices, consumers are increasingly looking for ways to mitigate the impact on their household budgets. For those considering a transition away from internal combustion engine vehicles, the rising cost of petrol reinforces the financial benefits of electric vehicles (EVs). Daily Energy News has previously explored the long-term savings available, as detailed in our guide: Real Cost of Owning an EV in Australia 2026: Save Thousands Annually.
Optimising EV charging to take advantage of off-peak electricity rates or solar generation can further reduce running costs. Our guide, Charge Your EV for Under $5: Best Times in Australia 2026 with Solar & Smart Tariffs, provides practical advice for maximising savings. For broader energy bill management, understanding and engaging with market offers remains crucial, as Default Market Offer (DMO) and Victorian Default Offer (VDO) prices set a safety net but are rarely the cheapest options available.
While wholesale electricity prices for the National Electricity Market (NEM) saw significant reductions in Q2 2026 due to increased renewables and battery storage, these benefits are yet to translate into widespread relief at the petrol pump. The continued volatility in global oil markets, coupled with domestic taxation, suggests that Australians will need to remain vigilant in managing their transport and energy expenses for the foreseeable future.
Long-Term Outlook
The ACCC continues to monitor fuel markets closely, providing weekly updates to enhance transparency for consumers. However, the current trajectory indicates that unless there is a substantial shift in international oil prices or government policy, the era of higher fuel costs is likely to persist through the remainder of 2026. This ongoing pressure underscores the economic imperative for consumers to explore all available avenues for energy efficiency and alternative transport solutions.