What is moving Australian energy prices right now (September 2026)

Petrol hurts, power bills eased a little, and the rules for solar and batteries keep shifting. Here are the events of the last six months that explain what Australian households are paying this spring, in date order, and what each one means for you.

28 February 2026: conflict in the Middle East escalates

Wholesale petrol and diesel prices began climbing on 20 February; on 28 February conflict escalated between the United States, Israel and Iran. The ACCC moved from quarterly to weekly fuel reports in March. By 23 September the five-city average for regular unleaded was 237.1 cents a litre, 66.2 cents above 20 February, and diesel was 286.8 cents.

The biggest hit is at the bowser, not on the power bill. Petrol prices in the big cities also move in weekly cycles, so the day you fill up matters. It has also sharpened the running-cost case for an electric car; see our EV guide.

18 March 2026: battery rebate cut announced for 1 May

The Clean Energy Regulator announced that from 1 May 2026 battery incentives under the Cheaper Home Batteries Program would be tiered by size: full support up to 14 kWh, 60% from 14 to 28 kWh and 15% from 28 to 50 kWh. It warned the rebate depends on the installation date, not the contract date.

If you are buying now, a battery of up to 14 kWh still earns the full rate per kWh, and the next step down in the STC factor comes on 1 January 2027.

1 April to 3 August 2026: fuel excise cut and restored

The government cut fuel excise by 32 cents a litre from 1 April to 30 June, partly restored it in July and fully restored it to 53.7 cents a litre on 3 August. The ACCC found fuel businesses passed the changes on appropriately.

So part of the price rise at the pump since August is the excise coming back, not the oil market.

12 May 2026: the Budget

The 2026-27 Budget centred on fuel security. For energy bills, the key items were a 20% domestic gas reservation for LNG exporters from 1 July 2027, and a phase-down of the Electric Car Discount: cars over $75,000 move from a full fringe benefits tax exemption to a 25% discount from 1 April 2027. Its cost-of-living package leaned on tax cuts and a temporary fuel excise cut, with no new household electricity bill rebate.

The gas reservation is aimed at east coast gas prices over the long term. It does nothing for this year’s bills.

20 May 2026 onwards: default electricity prices fall

The Essential Services Commission set the Victorian Default Offer for 2026-27 at an average $1,591 a year for 4,000 kWh, $84 (5%) lower, with lower wholesale, network and environmental costs. The AER’s final Default Market Offer for NSW, south-east Queensland and South Australia also took effect on 1 July, lower in the NSW and south-east Queensland network areas. Your exact reference price depends on your distributor and tariff; Energy Made Easy shows it next to every plan.

Remember what the default price is: a ceiling for standing offers and a yardstick for everyone else. If your market plan went up on 1 July while the reference price went down, it is time to compare.

1 July 2026: new prices and free midday power

New default prices took effect, and with them the Solar Sharer Offer in NSW, south-east Queensland and South Australia: three hours of free electricity a day, up to 24 kWh, for smart meter customers who opt in. Victoria’s default time-of-use tariff moved to three periods with a cheap solar soak from 11 am to 4 pm.

The practical upshot: the cheapest time to run appliances is now the middle of the day, not the middle of the night. Our saving guide explains how to use it.

26 August 2026: gas networks plan for fewer customers

The AEMC proposed reforms for gas networks facing declining demand as homes switch to electric appliances, including a 20-year outlook. It said the changes could bring “modest cost increases” for people who keep using gas in the near term, in exchange for less price volatility later. Submissions close on 8 October; a final decision is due in December.

Anyone replacing a gas appliance soon should assume gas network charges are more likely to rise than fall.

28 August 2026: record rooftop solar

The CER reported a record 1 gigawatt of rooftop solar installed in the June quarter and more than 500,000 battery applications since the program began.

All that midday solar is the reason the new tariffs push usage into the middle of the day, and why feed-in tariffs keep falling.

Also in the background

On 17 September the Victorian ESC proposed rule changes for 1 March 2027, including clearer protections for separately metered EV and battery setups and a confirmation that discounts offered with no end date must last the whole contract. On 23 September the AEMC released a draft rule for kerbside EV chargers that it says adds about $1 a year to a typical bill.

Where that leaves your bill

Electricity default prices are a little lower than a year ago in most regions, but only households who check their plan will see it. Fuel is the pressure point, and gas is the long-term risk. The next big date is March 2027, when the draft default prices for 2027-28 are due, following the pattern of recent years. Our 2027 outlook covers what is already known, and you can compare plans against the new reference prices today. In the meantime, a free contract alert tells you when to look again.