Approximate savings during excise cut
Small car: 40-litre fuel tank
Mid-sized SUV: 60-litre fuel tank
Large 4WD: 80-litre fuel tank
The Federal Government has halved the fuel excise in an effort to ease motorists’ pain at the pump. Though it sounds great, it comes with a catch.
As part of the Federal Government’s 2022 Federal Budget unveiling, the government’s excise on fuel will be halved, saving motorists 22.1 cents per litre of unleaded and diesel fuel. The initiative was announced and came into effect at midnight on March 29, and will stay in place for six months to September 28.
The reduction in the excise will see motorists save roughly $15 when filling a 60-litre tank of unleaded fuel.
However, the Federal Government stands to lose $2.65 billion in excise revenue over the next six months, according to Australia’s peak motoring body, the Australian Automobile Association (AAA).
There have also been concerns as to whether fuel retailers will fully pass on the excise cut to motorists.
“Motorists deserve to know how the Government will police this tax cut and ensure it’s not simply swallowed by fuel retailers, as the experience overseas is that retailers are pocketing the profits and motorists continue to miss out,” said AAA Managing Director Michael Bradley.
The government body who monitors fuel pricing, the Australian Competition and Consumer Commission (ACCC), issued a statement on Budget Night assuring motorists they would be monitoring fuel prices closely.
“We will contact petrol retailers to set out our clear expectations that the savings are passed on to consumers and advise them that we will be monitoring their margins. We will also continue to inform consumers of retailer behaviour,” said ACCC Chair Gina Cass-Gottlieb.