National

Motorists urged off panic buying as excise cuts end

By Tom Wark

Aug 1, 2026

A petrol station in Sydney (file) — With the federal fuel excise discount ending, the prospect of panic buying has authorities worried. -AAP Image

Motorists are being warned to avoid forming lengthy Sunday bowser queues as fears of a petrol panic buying resurgence are stirred.

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With the federal fuel excise discount to end on Monday, the prospect of chaos as motorists try to cash in on cheaper prices has authorities worried.

The ramping up of strikes between Iran and the US has increased fears fuel supplies will be disrupted again, leaving drivers re-exposed to price shocks.

"We ask people to buy as much fuel as they need, no more, no less," Energy Minister Chris Bowen told reporters on Saturday.

"When we see massive increases in demand, all of a sudden, that's what puts huge pressure on the supply chain."

While the spectre of panic buying remains a concern, Mr Bowen said he was heartened by a lack of panic when prices first rose last month.

However, the minister poured cold water on hopes the heavy vehicle road user charge discount would be extended.

"The road user charge is linked to the petrol excise and that's returning to normal over the weekend," Mr Bowen said.

Australia has slightly increased its fuel reserves to 43 days worth of petrol and 39 days worth of diesel, Mr Bowen said.

With the country's fuel deliveries locked in until October and price rises unlikely to fully kick in for a couple of weeks, savvy drivers should still be well protected.

NRMA spokesman Peter Khoury said behaviour changes from both drivers and oil companies since the war in Iran started have insulated Aussies from too great an oil shock.

"Motorists have become a lot more shopper savvy, we saw significant increases in traffic onto our app from Australians looking for the cheapest fuel," Mr Khoury told AAP.

"But the margin between the wholesale and the retail price - or the profit margin - came in considerably, sometimes as little as four or five cents a litre."

Even with excise discounts ending, Mr Khoury said it was highly unlikely prices would rise to the heady heights of the start of the war.

"We expect the national average for unleaded to go over $2 and diesel to get somewhere between a $2.40 and 2.50," he said.

The consumer watchdog will also be monitoring for excessive price rises in coming weeks, both Mr Bowen and Mr Khoury said.

The average Unleaded 91 price across capital cities sits at 1.96 per litre.