Peter Dutton’s proposal to halve the fuel excise for 12 months has drawn national attention as a cost-of-living measure, but for businesses that rely on fuel cards and manage vehicle fleets, there’s more to consider than a temporary price drop at the pump.
While the Coalition’s plan offers short-term savings on fuel, it also raises an important question for fleet operators: Would a fuel excise cut deliver more value than using a fuel card with consistent, long-term discounts?
What’s Being Proposed?
The Coalition’s policy would cut the fuel excise from 50.8c to 25.4c per litre for one year, potentially lowering fuel prices by up to 25c per litre – if the full savings are passed on by retailers.
According to the opposition, a driver filling up a 55-litre tank weekly would save about $14 per week, or $728 over the year.
But this figure is based on relatively high fuel usage, and for many drivers, the savings could be significantly lower.
What Happened Last Time?
When the Morrison government halved the excise in 2022, fuel prices fell, but only briefly. Once the discount ended, prices bounced back, and so did the need for businesses to rely on fuel cards for consistent savings and expense control.
Many fleet managers who had paused their fuel card use during the excise cut returned quickly once prices rose again, highlighting the need for reliable, long-term solutions.
Fuel Card vs Fuel Excise Cut
Let’s look at how this stacks up against the savings available through a Shell Card, for example, a fuel card commonly used by small businesses and fleets across Australia.
- During Shell Card’s promotional period, drivers can save 6 cents per litre for 6 months, then up to 4 cents per litre ongoing.
- For a vehicle that fills a 55-litre tank once per week, the Shell Card offers a saving of $3.30 per week during the promo (6c x 55L), and $2.20 per week after (4c x 55L).
- Over 12 months, that adds up to $143 in savings – without relying on a temporary government policy.
Now imagine that same business has 3 vehicles. That’s $429 per year in ongoing fuel savings, purely from using a fuel card.
And that’s just on price – fuel cards also offer convenience, reporting, and account controls that go beyond cost per litre.
| Weekly Fuel Spend | Approx. Litres | Shell Card Savings (6c/L) – First 6 Months | Shell Card Savings (4c/L) | Excise Cut Savings (25c/L) |
| $100 | ~55.5 L | $3.33/week | $2.22/week | $13.88/week |
| $250 | ~138.8 L | $8.33/week | $5.55/week | $34.70/week |
| $500 | ~277.7 L | $16.66/week | $11.11/week | $69.43/week |
| $1,000 | ~555.5 L | $33.33/week | $22.22/week | $138.88/week |
| $5,000 | ~2,777.7 L | $166.66/week | $111.11/week | $694.43/week |
What businesses need to remember here is that Shell Card savings are ongoing; the proposed fuel excise cut would only last for 12 months.
The figures in this table assume full discounts are applied and that all fuel is purchased at eligible locations.
It’s also important to keep in mind that the excise savings depend on retailers passing the full cut on to consumers – which isn’t guaranteed.
Short-Term Fix vs Long-Term Strategy
While Dutton’s plan might provide immediate relief, it’s limited to just 12 months. Once the excise returns to the full rate, prices could jump overnight – leaving fleets scrambling to adjust.
In contrast, fuel cards like Shell Card or FleetCard offer predictable discounts and tools that support long-term planning, including:
- Spend tracking across your fleet
- Driver-specific controls
- Tax-ready reporting
- Consolidated invoicing
For fleet managers, this level of control isn’t just a nice-to-have – it’s a valuable operational tool that goes beyond fluctuating fuel prices.
The Takeaway for Business & Fuel Card Users
Peter Dutton’s fuel excise cut may offer some short-term savings, especially for high-usage businesses. But for most fleets, the real value still lies in using the right fuel card – one that offers ongoing discounts, easy management, and reliable support for your operations.
If you already use a fuel card, now’s a good time to review your current deal and see if you’re getting the best rate per litre. If not, it may be worth comparing fuel cards to see what savings are available – with or without an excise cut.
Find the Right Fuel Card for Your Business
Looking to lock in reliable savings no matter what happens at the pump?
Compare fuel cards now and find the one that best suits your business needs. The right card could save you more than any temporary discount – and keep delivering value long after a 12-month excise ends.
Enquire to save
