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Australia rules out Russian diesel as pump prices hold near $2.83 a litre, and what it means for drivers

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Australia rules out Russian diesel

Australia rules out Russian diesel as pump prices hold near $2.83 a litre, and what it means for drivers

Energy Minister Chris Bowen said on 10 October 2026 that “We don’t need or want Russian fuel in Australia.” He added that arrangements are in place with trading partners so Russian fuel does not flow to Australia, and that the policy “is not changing, will not change”. The comments came after reports of a United States deal to buy Russian diesel.

Australian drivers are still paying a lot for diesel. The Australian Institute of Petroleum puts the national average pump price at 283.0 cents a litre for the week ending 11 October, down 1.7 cents on the week before. The weekly average peaked at 286.7 cents in the week ending 27 September, which is the figure that sat close to $2.87.

What the minister said

Asked about the reported deal, Mr Bowen said Australia does not want Vladimir Putin to benefit from the war in the Middle East. He said what the United States does is a matter for that country and that Australia will not change its approach. The government’s position is that Russia should not be rewarded for its invasion of Ukraine through any arrangements made in response to the Middle East crisis.

On 9 October the United States Treasury issued General License 135, which authorises transactions linked to the sale, delivery, offloading and importation of Russian diesel into the United States until just after midnight Eastern time on 7 April 2027. It applies to American rules only and does not change Australian law.

Why Russian diesel is already off limits

Australia’s Russia sanctions framework prohibits importing, purchasing or transporting oil, refined petroleum products, natural gas, coal and other energy products that were exported from, or originated in, Russia. That is the rule the minister was pointing to when he said the arrangements are in place.

Diesel pump prices this week

Week endingNational average diesel price
13 September 2026257.7 cents a litre
20 September 2026273.6 cents a litre
27 September 2026286.7 cents a litre
4 October 2026284.7 cents a litre
11 October 2026283.0 cents a litre

State averages for the week ending 11 October ranged from 275.6 cents in Western Australia to 301.5 cents in the Northern Territory. Victoria averaged 282.0, New South Wales and the ACT 282.9, Queensland 285.6, South Australia 286.4 and Tasmania 287.5 cents a litre.

The federal government’s fuel statistics page, which uses the ACCC weekly report, shows diesel in the five largest cities at $2.83 on 30 September. That was 39 cents below the late March level but still 107 cents above the pre-conflict price on 20 February. The government says Australian pump prices follow international benchmark prices, which have stayed high.

How much fuel Australia is holding

At the same briefing Mr Bowen said Australia has 31 days of diesel, one day less than the week before, along with 43 days of petrol and 30 days of jet fuel. He said 51 ships are on the way with fuel and 3.2 billion litres of various fuels are contracted for delivery over the next four weeks. The National Fuel Security Plan remains at Level 2, which the government describes as keeping Australia moving.

What it means for diesel drivers

The table is our own calculation, using the latest national average of 283.0 cents and the 12 week average of 257.3 cents from the same Australian Institute of Petroleum report. A 70 litre tank costs about $198 to fill at today’s average, compared with about $180 at the 12 week average.

Fuel useCost per 100 km at 283.0 centsCost per 100 km at 257.3 cents
7 L per 100 km$19.81$18.01
9 L per 100 km$25.47$23.16
11 L per 100 km$31.13$28.30

The government’s own advice for households is simple. It says smooth driving can cut fuel use by up to 30 per cent and a well-maintained car by up to 17 per cent. Keep tyres at the recommended pressure, remove roof racks and unneeded weight, avoid idling and combine errands into fewer trips.

If you are choosing your next car

Diesel utes and large SUVs such as the Ford Ranger, Toyota HiLux and Isuzu D-MAX feel price spikes the most because they use more fuel per kilometre. Our guide to whether petrol, hybrid or electric is cheapest to run compares the options, and the list of the cheapest cars to run in Australia shows what low fuel use looks like in practice.

If you tow or need a ute, the plug-in hybrid BYD Shark 6 is one alternative, and we compare it with a rival in our Shark 6 and Ranger PHEV comparison. Fuel prices move weekly, so check the latest pump price before you run the numbers for your own driving.

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Tagged:Car prices australiaHybrid cars australiaFuel prices australia
Category:Automotive News in Australia

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Waqas Afzal

By Waqas Afzal

Founder & Senior Automotive Editor

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Founder and Senior Automotive Editor at AussieMotor, covering automotive news, new car launches, vehicle pricing, buying guides, reviews, and market insights. I oversee editorial quality, fact-checking, SEO, and content strategy, with a focus on providing accurate, practical information that helps car buyers make better informed decisions.

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