Canberra motorists are once again digging deeper at the bowser, with petrol prices climbing sharply after the Federal Government’s temporary fuel excise relief came to an end.
Regular unleaded averaged $2.12 a litre across the ACT on Monday (10 August), making Canberra the second most expensive capital city in the country behind Darwin, where motorists were paying an average of $2.17 a litre.
The surge has prompted many Canberrans to cross the border into Queanbeyan, where fuel prices were significantly cheaper.
Jenny, an ACT resident, said she drove to Queanbeyan after finding petrol selling for $1.89 a litre, compared with $2.09 at her local service station.
She was far from alone, with a steady stream of ACT-registered vehicles lining up to fill their tanks.
Fuel prices in Canberra have climbed dramatically from around $1.60 a litre in late June to today’s average, while premium 98 unleaded has risen above $2.38 at many service stations and diesel has exceeded $2.50 a litre.
According to the NRMA, the latest spike is largely the result of the Federal Government restoring fuel excise to its full rate, combined with ongoing instability in global oil markets.
The Commonwealth halved the fuel excise on 1 April, reducing it from 52 cents to 32 cents a litre to help offset higher fuel prices following tensions in the Middle East.
The relief began winding back on 1 July, when 16 cents a litre was reinstated, before ending completely on 3 August, returning the excise to its full indexed rate of 53.7 cents a litre.
An NRMA spokesperson said Canberra’s relatively small fuel market also contributed to higher prices.
“Prices have risen due to the removal of the fuel excise rebate combined with the ongoing US-Iran conflict,” the spokesperson said.
“Given current market conditions, falls in the order of five cents per litre are expected in the coming week. As with Darwin and Hobart, Canberra is a smaller market with less independent competition,” he told Region.
The ACT Government said it continues to work with the Australian Competition and Consumer Commission and consumer protection agencies across the country to monitor fuel pricing and ensure retailers are not unfairly increasing their margins.
“Fair Trading inspectors continue to monitor fuel pricing and are empowered to issue infringement notices where necessary to ensure prices paid by consumers at the bowser match advertised prices,” an ACT Government spokesperson said.
Earlier this year, the ACT Legislative Assembly passed the Fuel Legislation Amendment Bill 2026, which gives the government new powers to collect information on fuel availability and strengthens consumer protections.
However, the government confirmed the legislation is not designed to influence retail fuel prices.
Instead, the new laws allow authorities to monitor fuel stocks and improve market oversight, while increasing penalties for service stations that charge motorists more than the advertised price.
“The increase related to the ending of the excise relief is unrelated to the amendments,” the spokesperson said.
Despite concerns from motorists about rising prices, the government said no fines have been issued under the legislation since it passed in May.
Officials said retailers had worked cooperatively to comply with the new fuel reporting requirements, with all ACT fuel retailers providing the required information since 1 July.
While Canberra drivers may receive some relief in the coming days, the NRMA says any decline is likely to be modest, with prices expected to fall by around five cents a litre if current market conditions continue.
Extracted in full from: https://region.com.au/2-12-at-the-bowser-canberra-motorists-head-to-queanbeyan-for-cheaper-fuel/988393/
