Australian motorists are facing a sustained rise in petrol prices, with national averages now exceeding $2 per litre. This trend is expected to continue, impacting household budgets and the broader economy.
As of July 28, 2026, the national average price for unleaded 91 petrol is 201.8 cents per litre, with prices ranging from 91.0c/L to 385.0c/L across the country. Victoria offers the lowest average at 191.2c/L, while the Northern Territory has the highest at 241.0c/L.
The increase in petrol prices is attributed to several factors, including rising global crude oil prices and the partial restoration of the fuel excise. In June 2026, the Australian government reinstated the fuel excise, which had been temporarily reduced, contributing to higher retail prices.
Economists warn that these elevated prices are likely to persist for at least a year, influenced by ongoing geopolitical tensions in the Middle East. The conflict has pushed global crude oil prices back above $US100 a barrel, affecting domestic fuel costs.
For consumers, this means higher transportation costs, which can strain household budgets and increase the cost of goods and services. The Reserve Bank of Australia is also monitoring the situation, as sustained high fuel prices could influence inflation and monetary policy decisions.
Motorists are advised to stay informed about fuel price trends and consider strategies to mitigate the impact, such as monitoring local fuel prices and planning refueling to take advantage of lower rates.