Fuel tax cuts won’t touch diesel – WA needs a smarter buffer

April 18, 2026 — 3:00am

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Fuel excise cuts were meant to deliver relief.

But for diesel users in Western Australia, the data tells a very different story.

Diesel prices in WA averaged $3.14 per litre on 15 April – far higher than petrol prices and just 7 cents less than they were on 31 March, just before the federal government halved the fuel excise.

Much of the benefit from the tax cut was wiped out within days by rising global oil prices as the stand-off between the US and Iran continues.

Different markets, different demands, different pressures.

Diesel markets are tighter, benchmarked differently from petrol, and demand is far less flexible – especially across freight, resources and agriculture.

This is the uncomfortable reality of a supply-driven oil shock.

And domestic policy levers struggle to hold prices down for long – especially for diesel.

For a state like WA, where economic activity depends so much on these sectors, this rigidity matters.

The result is that price relief measures designed in Canberra can evaporate before they reach those who need them most.

It is no coincidence that, at the same time, the Prime Minister has been in Singapore, Brunei and Malaysia, working to shore up Australia’s fuel supply relationships.

These visits reflect a........

© WA Today