Fuel Excise

As I am sure you are aware, petroleum fuels in Australia attract a fuel excise of 38.9 cents per litre plus GST.  Biodiesel also attracts this excise although a ‘Cleaner Fuels Grant’ is available if you can prove that your Biodiesel is made to the Australian Standard.

I have made enquiries with the ATO Fuel and Energy Group regarding the excise applied to unrefined vegetable oil used as fuel in a diesel engine, specifically discussing straight new vegetable oil and waste vegetable oil, excluding Biodiesel which is refined.  The representative didn’t know of a fuel excise on this form of fuel and sent me the following response by email the next day:

“Unfortunately we cannot locate any specific information on straight or waste vegetable oil, nor can we provide any advice on feedstock. The Excise Business Line can only provide specific information on vegetable oils that are used in the production of Biodiesel - as this is when it enters our marketplace.

The only document on the ATO Website that refers to vegetable oil is in reference to our Product Stewardship Scheme, which does not apply to you.”

This document indicates to me that fuel excise does not apply to unprocessed Vegetable Oils being used as fuel in a diesel engine.