The two men allegedly broke into a building site in Tralee, near the ACT-NSW border, and took a water tank containing 1000 litres of fuel on Saturday afternoon.
Police spent almost a week investigating the theft until they found the diesel-filled water tank at a home in Mount Fairy about 45km away.
A ute was also seized and they arrested a 37-year-old man found hiding in the premises on Thursday afternoon.
He was charged with larceny and entering an enclosed land without a lawful excuse.
Earlier that day, officers arrested a 27-year-old after searching a Queanbeyan home where they seized a small amount of methylamphetamine.
He faces charges of larceny, destroying or damaging property, entering an enclosed land without a lawful excuse, breach of bail and some drug charges.
The 27-year-old was granted bail and will face court on Monday.
In the surrounding region, diesel currently costs between $2.78 and $2.95 per litre.
The price of fuel has skyrocketed in recent months due to the Iran-Israel-US conflict and ensuing politics over the Strait of Hormuz, a vital shipping lane for oil and fuel.
At its peak, the price of diesel ballooned beyond $3 a litre.
Though the federal government has introduced some measures to bring down the cost of fuel, such as a cut to the fuel excise, inflation and cost pressures continue to weigh on Australian consumers.
The swelling cost of fuel has forced councils to increase their rates for garbage collection while airlines have jacked up ticket prices.
Fuel prices could also worsen after a fire damaged almost half of petrol production at one of Australia's two remaining refineries on Wednesday.
The Viva Energy Geelong refinery supplies 10 per cent of fuel nationally and half of Victoria's stock.
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