Petrol prices expected to jump on September 29 when fuel excise cut ends
By Sourced Externally
September 12, 2022
elbourne petrol prices have hit their lowest point since November last year, as relieved drivers rushed to stations charging in the low 150s on the weekend.
It comes after retail petrol prices hit 14-year highs in the June quarter – at times topping 230 cents per litre – and just weeks before the fuel excise cut ends.
Melbourne’s average price for unleaded petrol was just 156.1 cents per litre on Sunday, Royal Automobile Club of Victoria’s Eleanor Colonico said.
“Two months ago on July 11, the average price of unleaded fuel across Melbourne was 233 cents per litre – 76.9 cents more expensive than it is today,” she said.
Fuel website Petrol Spy showed one station selling unleaded for as low as 149.5 cents, with dozens in the low 150s.
Australasian Convenience and Petroleum Marketers Association chief executive Mark McKenzie said they haven’t seen average prices this low “in all of 2022”.
“The last time we were this low was in the back half of November of last year before the Russia-Ukraine issues,” he said.
He said price differences of more than thirty cents between retailers generally indicated the cycle was changing.
“We’re getting close to the end of the current cycle (but) … there’s still plenty of time.”
He said the return of the full fuel excise on September 29 will increase prices by about 25 cents, but they still expect them to be lower than they were before the excise was cut.
“If we compare it to the current average price … that would be pushing it basically to 182 cents. But that’s still almost 50 cents a little lower than the peaks we saw earlier this year,” he said.
“Barring any black swan event … we can expect further downward or steady movements in oil prices.”
Ms Colonico said fuel prices are influenced by factors including location, availability, international benchmark prices, taxes, the Australian and US dollar’s values dollar, and levels of competition in different areas.
Fuel website Petrol Spy showed one station selling unleaded for as low as 149.5 cents, with dozens in the low 150s. Picture: Josie Hayden
“It is not uncommon for retailers close by to be selling fuel at different rates, so it’s important you keep an eye on the Fuel Tracker (on the RACV website) to obtain the best deal,” she said.
Melbourne motorist Melanie Griffith said she was shocked to see petrol advertised for 149.6 on Sunday and paid $50 to fill up her car in Preston.
“When I saw it, I thought I’m jumping on that pretty quick,” she said.
“Two months ago I was paying $110.”
But she said she was concerned about the return of the fuel excise amid rising grocery costs.
Treasurer Jim Chalmers told a Canberra press conference last week it would be “too expensive” to pause the tax indefinitely and they needed to address government debt.