Petroleum and diesel excise

The petroleum and diesel excise gap is difference between the amount of petroleum and diesel excise and duty if all taxpayers complied with the law (theoretical petroleum and diesel excise and duty), and the actual excise and duty collected for a defined period, typically a financial year.

Excise is a tax on fuel and petroleum products produced or manufactured in Australia. Entities that manufacture or store excisable goods must hold an appropriate excise licence and report to us and pay duty on goods delivered into the Australian domestic market.

Imported fuel and petroleum products are subject to customs duty at a rate equivalent to excise to ensure they are treated consistently with goods manufactured in Australia. These imported goods are referred to as excise equivalent goods (EEGs).

Our broad approach to estimating the gap

To estimate the gap, we use a top-down approach that relies on the following data sources:

  • Australian Petroleum Statistics from the Department of Industry and Science
  • data compiled by the Australian Border Force and our clearance data
  • the excise tariff rates published on our website.
    Last modified: 05 Nov 2015QC 47278