The country’s competition watchdog has confirmed it will ensure the cut to the fuel excise, made by the Federal Government overnight, is passed on at the bowser.
The fuel excise has been halved to 22.1 cents for the next six months in a bid to ease the cost of living for everyday Australians, meaning the price of petrol should now start coming down.
The cut is official now, but we’re being warned it could take up to two weeks to flow through to the bowser.
Treasurer Josh Frydenberg claims it will save the average car owner around $15 a tank.
Australian Competition and Consumer Commission chair Gina Cass-Gottlieb said they will ensure the saving is passed on in fuel by retailers.
“We expect that fuel retailers will pass on the cut in fuel excise to reduce the price at the bowser as soon as possible, as existing petrol stock levels are used up,” Ms Cass-Gottlieb said.
“In light of the announcement, our petrol team will focus on this price monitoring work for the next six months to determine how retailers are passing through the excise reduction to consumers.”
“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.”
“As these changes flow through to prices at local servos, this is a good time for consumers to look around and shop at those retailers who have already passed on the cut in the excise to their petrol prices,” Ms Cass-Gottlieb said.
The full excise has already been paid on existing stocks of fuel which will be run down first.
“This lag in the adjustment of wholesale prices is shorter in larger cities and sites with large turnover, but is often longer in regional locations where lower volumes of fuel are sold and fuel is replenished less frequently,” Ms Cass-Gottlieb said.
“If retailers make false or misleading statements to consumers that they have passed on the savings when they have not, the ACCC will not hesitate to take appropriate enforcement action”.
Extracted in full from: Competition watchdog to monitor petrol prices following cut to fuel excise – myGC.com.au