Fuel prices are expected to rise with the federal government’s excise duty cut no longer in place from Thursday – but falling crude oil prices suggest relief is on the way.
Australia’s average petrol price is at its lowest point in more than six months, but the end of the federal government’s fuel excise duty cut means tanker costs could soon rise in arrow.
Last week, the national capital’s average price for super unleaded 95RON dropped to $1.86 per liter – equal to the six-month low recorded on April 29 – before rising to $1.88 at the start of this week.
While Brisbane ($1.84/litre) and Melbourne ($1.81/litre) both recorded their lowest average fuel prices since Conduct began tracking daily prices on March 1, 2022, Sydney prices rose five cents in a fortnight.
However, prices are expected to rise to more than $2 a liter over the next week following the federal government’s 22.1 cent reduction in fuel excise duties. ends September 28 at 11:59 p.m..
With the 22.1 cent fuel excise increase applied to current prices, Australian motorists can expect to pay an average of $2.10 per liter for unleaded 95RON.
Although prices at the pump have fallen less than 15% since the fuel excise tax cut was implemented on March 30, crude oil prices have fallen more than 20% over the same period, dropping from US$102.94 a barrel to US$78. 69.
Since August 29, the cost of RON 95 has fallen by 0.4 cents per liter (or 17%) – while crude oil prices have fallen by US$18.34 (or 19%) in less than a year. month.
If the price of crude oil continues to decline at its current rate, the cost of fuel could return to current levels within a few weeks.
Earlier this month, the Federal Government asked the Australian Competition and Consumer Commission (ACCC) to step up its monitoring of fuel prices, to ensure retailers pass the savings on to customers during the duration of the excise duty reduction.
In the ACCC’s June quarterly report, the consumer watchdog found that the annual average price of gasoline was the highest since 2008 despite fuel excise duty cuts and lower fuel prices. crude oil price.
“We will be engaging with fuel wholesalers and retailers shortly to say that we do not expect to see any unusual or abnormal increases in wholesale and retail prices in the days leading up to, on the day of or after the reintroduction of the rate. full fuel excise,” ACCC President Gina Cass-Gottlieb said in a news release last month.
“Motorists are reminded that prices will continue to fluctuate with changes in international prices and the exchange rate, as well as petrol price cycles in the five major capitals.
“Our monitoring and analysis will assess and report on all factors influencing retail prices. The ACCC will continue to report weekly to consumers on fuel price trends and when to find the cheapest fuel.