The temporary cut to the fuel excise which offered Australian motorists some relief at the bowser has now ended … but grey nomads travelling in regional areas shouldn’t feel the pain quite yet.
Back in March, the Morrison Government halved the fuel excise from 44.2 cents to 22.1 cents a litre. It was a way of partially shielding Australians from the soaring cost of living for six months.
Time is now up though, and the federal treasurer, Jim Chalmers, has resisted calls to extend the relief, saying the government simply can’t afford to extend the cut.
The new excise – indexed to CPI – will be 46 cents per litre.
With the war in Ukraine continuing, it is difficult for anyone to predict what happens with fuel prices next.
Fuel prices are well and truly on the up and up. PIC: Pixabay
Graeme Bethune, the CEO of energy advisory firm EnergyQuest, told the Sydney Morning Herald that recent price drops will probably be reversed.
“Prices will likely go up by something close to the increase to the excise, which is about 22 cents – but that is with other things remaining the same,” he said. “Other things are changing all the time.”
In theory, prices should not immediately soar because there is still some 700 million litres of lower-excise fuel still in the system.
As petrol stations in cities have a higher turnover than those in the regions, they are likely to purchase more expensive fuel sooner.
The NRMA’s Peter Khoury said it should mean cheaper fuel in country areas.
“It will take several days in the capital cities and possibly even longer – up to two weeks – in regional areas,” he said. “That is because service stations will already have existing stock before they go and restock fuel at the increased rates.”
In a recent letter to major wholesalers and retailers, the ACCC said it would be watching for any ‘uncharacteristic or abnormal retail price increases’ as the full excise is reintroduced.
“The ACCC will be monitoring wholesale and retail prices closely and will not hesitate to take action where there is evidence of misleading or deceptive conduct, misrepresentation about the excise increase and retail prices, and anti-competitive behaviour,” it said.
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