Grey nomads feeling the pain from the soaring fuel prices of recent weeks are to get some relief.
From midnight tonight, Australia’s fuel excise will be halved from 44.2 cents per litre to 22.1 cents.
Treasurer Josh Frydenberg confirmed the news as he unveiled the budget in Federal Parliament this evening.
However, the Treasurer has warned the cut would have to filter through to the pump over the next two weeks.
And then it relies on that cut being passed on — something the Treasurer said the consumer watchdog would keep an eye on ‘to make sure these savings are passed on in full’ from retailers.
It is so far unclear how significantly the move will affect prices at the pump. However, if retailers are mandated to pass all savings on to consumers the cost of petrol would likely fall from approximately $2.20 per litre to $2.00.
For a grey nomad who uses 17 litres of ULP per 100 kilometres, travelling 500 kilometres will cost $18.80 less once the reduced excise takes effect.
However, nomads planning a long-term trip need to be aware that the excise relief though will be temporary. The excise will go back up to 44.2 cents in six months’ time.
In a few months time it will be back up, and then the government will stop the excise reduction! The oil companies always win…
No, the shareholders win. Buy oil company shares, zimple
I have always said that the fuel goes up instantly when oil prices rise and goes back down slowly when it drops. They have just proved my point by saying that the price drop will take a few weeks to filter through as the stations have to use the fuel in there tanks first before the price drops. Don’t they have fuel in their tanks when the price increases.
And diesel ? It’s just petrol…
Well Fuel coming up the Stuart Hwy will still give reason to pause. Currently after the reduction fuel is sitting around $2.03.9 for unleaded and $2.22.9 for diesel in Alice Springs so expect roadhouses to be 10 to 20 cents dearer. For anyone on a tight budget I would say that these prices will still affect the movements North on the Stuart Hwy.