Australia is moving toward a national road‑user charge (RUC) for electric vehicles to fill the funding gap left by declining fuel excise, and it matters to service station owners, even if you don’t sell EV charging. Your station remains at the core of road use funding, so knowing what’s coming is critical for long-term planning. Here’s why even fuel-only service station owners need to understand what’s coming, what it means for your industry, and how to get ahead of the curve.
What’s Happening and When
National Momentum Building
In July 2025, the Australian government confirmed it’s advancing plans to introduce a national EV road‑user charge, exploring a distance‑based levy based on kilometres travelled. The proposal aims to replace shrinking excise revenues from traditional fuels, currently a major source of road funding. Discussions are underway between the Treasurer’s office and state treasurers, with infrastructure and industry stakeholders supporting the idea.
NSW Ready to Lead with Implementation
New South Wales has legislated for a distance‑based RUC to kick in from 1 July 2027, or whenever EVs make up 30% of new vehicle sales – whichever comes first. Battery EVs would be charged about 2.974 cents/km, with plug‑in hybrids at around 2.379 cents/km.
Legal Precedents and Challenges
The High Court’s 2023 ruling (Vanderstock v Victoria) invalidated Victoria’s attempt at state-level EV charges, determining it was unconstitutional under Section 90 as an excise. Therefore, only a federal scheme is legally viable going forward.
Why It’s Urgent to Plan Now
As EV adoption grows (over 9% of vehicle sales by mid‑2025) with spikes in QLD (80%) and VIC (70%) -excise revenue is set to decline rapidly. Models show fuel excise collections will drop significantly over the next decade, making RUC essential for sustainable road funding.
Why This Matters to Fuel-Only Service Stations
- Your Revenue Stream Isn’t at Risk – Yet
Fuel excise will remain a cornerstone of Australia’s road funding for many years. While EV adoption is increasing, the majority of vehicles on the road and therefore your customer base, will still rely on petrol and diesel for the foreseeable future. - Customer Behaviour May Shift in Unexpected Ways
Once EVs start paying a RUC, some drivers may reconsider switching away from fuel vehicles, especially in rural and regional areas where charging infrastructure is limited or unreliable. This could slow the decline in fuel demand and sustain customer flow longer than forecast. - Influence on Local Infrastructure Spend
As RUC changes the way road projects are funded, some communities may see upgrades or maintenance works reprioritised. Stations near major freight or commuter corridors could see altered traffic volumes or new development opportunities. - Competitive Positioning
Competitors that monitor policy changes closely will be quicker to adjust marketing, pricing, and operational hours to align with evolving travel patterns. Staying informed means you can adapt before they do. - Fuel Supply Chain Implications
The federal government’s push toward carbon reduction will likely influence refinery operations, distribution networks, and even seasonal price movements. Understanding the broader context helps you anticipate and manage cost fluctuations. - Community Perception & Brand Reputation
Businesses seen as forward-thinking – even if they remain fuel-only – can win goodwill by demonstrating awareness of broader industry shifts. This might mean engaging customers in conversations about the RUC or displaying information about government road funding.
How Oracle Petroleum Can Support You
We don’t just track the big-picture policy changes—we help you turn them into actionable strategies:
- Detailed Fuel Market Impact Reports
We can provide quarterly insights that break down government announcements, model how RUC could influence demand in your area, and highlight opportunities to retain and grow your customer base. Sign-up for our comprehensive compliance program to start informed with the market as it evolves. - Travel Pattern Monitoring & Forecasting
By combining public infrastructure project data, traffic counts, and EV adoption rates, we can help you understand how customer travel routes may evolve and when to adjust business hours or staffing levels. - Fuel Pricing & Supply Chain Strategy
Oracle Petroleum monitors wholesale price trends, supply disruptions, and refinery output changes linked to policy developments, giving you early warning of potential impacts on your margins. - Competitive Positioning Guidance
We help you market your station as an essential and dependable service hub – whether that means highlighting your role in regional fuel security, loyalty programs, or adding small-value amenities to retain customer loyalty. - Policy Tracking & Compliance Advisory
We maintain a constant watch on federal and state legislative developments so you’re never blindsided by new requirements. This includes ensuring your site meets any reporting obligations that could emerge alongside RUC. - Stakeholder Engagement Support
We can help you engage constructively with local councils, freight operators, and industry associations to make sure your interests are represented in transport planning discussions.
While the road ahead is changing, it isn’t leaving fuel-only operators behind. Every shift in policy, from the Road User Charge to broader infrastructure planning, is another chance to strengthen your position and future-proof your business. You don’t need to become an EV charging provider to benefit from knowing where the industry is headed – you just need a partner who can translate the noise into clear, practical steps that work for your site. At Oracle Petroleum, we keep our focus on what matters to you: protecting your margins, sustaining your customer base, and helping you adapt with confidence. The next move is yours, and we’re ready when you are.