Full fuel excise returns, adding to rising household costs
Filling up your vehicle is about to get more expensive as the six-month fuel excise discount expires at a time with global supply issues. Here’s what you need to know to ease the pain at the pump.
Petrol prices are set to increase significantly with the return of Australia’s full rate of fuel excise.
As part of the 2022 Federal Budget, the fuel excise was halved from 44.2 cents per litre down to 22.1 cents per litre for six months from March 29.
That discount is set to expire, with the full excise returning on September 29. From this date, the full fuel tax will be reinstated, adding an extra 25.3 cents per litre (including GST) to the amount of tax paid on fuel.
The Australian Competition and Consumer Commission (ACCC) reports that “wholesalers are expected to pass on this increase in full, from this date”, with the consumer watchdog expected to monitor prices to ensure fair trade.
“We will shortly be engaging with fuel wholesalers and retailers to say that we do not expect to see uncharacteristic or abnormal wholesale and retail price increases in the days leading up to, and on the day of, or after, the reintroduction of the full rate of fuel excise,” said ACCC Chair, Gina Cass-Gottlieb.
A poll conducted by the Australian Automobile Association (AAA) of 1,190 Australians found that 67 per cent want 100 per cent of funds raised from the excise put back into road and transport infrastructure. The poll also revealed the main concern for 53 percent of respondents was the overall cost of living.
"High fuel costs continue to be a major concern for Australian motorists, who clearly expect the taxes they pay at the bowser to be spent on making their transport network safer and more effective," said AAA Managing Director, Michael Bradley.
"It is clear that a strong majority of motorists oppose a 25 cent per litre increase in fuel excise, but motorists are more accepting of this tax if they see it being spent on the roads and transport infrastructure their communities need."