Cheaper fuel prices are starting to be seen at Wangaratta service stations as new tanker deliveries arrived on Wednesday that factor in the halved government fuel tax.

The halving of the fuel excise to retailers commenced on 1 April and runs to 30 June.

APCO dropped its price overnight to 222.9 cents per litre after it was 242.5c/l on Tuesday, taking into account existing fuel stocks were charged to the retail outlet at the pre-discount rates.

Mobil also dropped dramatically from 242.5c/l on Tuesday to 222.5c/l on Wednesday.

It's important to note that some fuel price indicator apps were reflecting incorrect prices in Wangaratta on Wednesday morning.

APCO Wangaratta's Paul Armstrong explained that as soon as new fuel tankers arrived on Wednesday the 26.3c/l fuel excise discount will be progressively applied as service stations will pay a lesser amount.

Mr Armstrong said fuel that was bought prior to Wednesday will be at the same rate for retailers and any deliveries from 1 April will be charged to retailers minus the 26.3 cent per litre fuel excise rebate.

He said competition depends on where everyone else is sitting and it will flow through over that day and a half from Wednesday.

"People look at $3.10 (for diesel) and think we're making a fortune on fuel but we pay an EFTPOS fee on every dollar spent and the majority of customers pay by EFTPOS," he said.

"It's 50-70 per cent more than it was three weeks ago so this puts the EFPOS fees up the same amount.

"We've been at $100 a barrel before but you also have to factor in the US dollar and it's not a straight forward mathematical equation.

"I will be looking forward to the price coming back down under $2 a litre again."

In terms of fuel supply, Mr Armstrong said they've been trying to keep fuel in stock and sometimes it's challenging because there is massive panic buying which does make it hard.

"In the last week and a half we haven't run out of stock," he told the Chronicle on Tuesday.

"What I noticed working on a console for a couple of hours when we didn't have staff is there were a lot more people coming in and just topping up cars.

"I equate it to the fact that the average car runs at 30-50 per cent full and when this happened people went to 70-100 per cent full and unfortunately we can't drag that extra fuel into it.

"The fuel was there, but tankers just couldn't supply it in time, but it's calmed down a bit now."

Mr Armstrong did acknowledge that if a tank of fuel has gone up $30 it's not in some people's budget to spend in the store, or people don't have time, or they are conscious of other people waiting to be served.

"When we have heavy volumes of fuel being pumped and a line of up to four at each bowser customers just don't spend money on store items because they don't want to hold up the next person," he said.

"There is nowhere to pull forward because the carpark is full due to the extra traffic."

The halving of the fuel excise on petrol and diesel is expected to reduce the cost of a 65-litre tank of fuel by almost $19, once the full excise reduction is passed onto customers.

The federal government will also reduce the Heavy Vehicle Road User Charge to zero for three months to help truckies continue their vital work for our nation.

It will defer the next scheduled increase in the Heavy Vehicle Road User Charge by six months.

Meanwhile, public transport in Victoria will be free for commuters during April to relieve financial pressure.