Why petrol prices are rising AGAIN across Australia – cancelling out the government’s cut to the fuel tax
By Sourced Externally
May 16, 2022
Petrol prices are soaring across the country despite government efforts to ease pressure at the pump.
Prices at the bowser rose for a fourth week in a row as international factors undermine the government’s temporary cut in fuel excise tax aimed at easing the cost of living.
The government excise on fuel was cut by 22 cents following the federal budget six weeks ago – but experts predict fuel prices will rise higher than $2.40 per litre.
Chris Ford from Compare the Market on Monday said global issues are working against motorists filling up their tanks.
Chris Ford (pictured outside a petrol station in Brisbane on May 16) said international factors are driving up petrol prices across the country despite the government’s fuel excise tax cut in March
Working against us right now is the exchange rate on the US dollar,’ Mr Ford told Sunrise.
‘We are paying more for oil than we were paying back then (mid-March), so we’re getting gouged a bit.’
The Australian Competition and Consumer Commission (ACCC) said between mid-April and May 12, regular unleaded petrol prices increased an average of 27 cents per litre and 28 cents per litre for diesel.
‘International prices have increased, influenced by the impact of the war in Ukraine on international crude oil prices,’ The ACCC wrote.
‘This has led to increases in wholesale prices, which are flowing into retail prices in many locations.
Mr Ford said sanctions on Russia and supply demands in China are set to drive prices up further.
‘There are a couple of things to watch out for internationally, the EU is considering bans on Russian oil, choking supply a bit further,’ Mr Ford said.
‘Demand is said to increase in China, looking to increase its COVID lockdown restrictions, there will be more people on the road in China and they will increase demand.’
Australia’s international benchmark price for unleaded had increased $12 a barrel in a week with Diesel up by 6.4 cents to $203.2 a litre.
Motorists are urged to shop around to find cheap fuel as major price discrepancies – as high as 40 cents per litre- occur during a petrol price cycle.
Oil production is set to peak in September which is predicted to settle prices and coincides with the end of the fuel excise cut measure on September 28.