The petrol excise relief ends Thursday but there are a few Australians who will not be worrying about the cost of filling up their tanks – the petrol company bosses.

Ampol has doubled its profits in the last six months to more than $1 billion largely due to its refinery operations with managing director and chief executive Matthew Halliday trousering almost $5 million in pay.

“Ampol’s main business is selling petrol,” David Richardson, senior researcher at The Australia Institute, said. “It is a very poor look to see Ampol more than doubling its half year operating profit at a time when Ampol’s customers are doing it tough.

“Ampol’s apparent profiteering is visible in figures given to the stock exchange. If Ampol is doing it under the ACCC’s gaze, what are the other companies doing?” he said.

Other petrol retailers including Coles and Woolworths recorded giant profits as the fuel excise relief, introduced by the Morrison Government in March to ease cost of living pressures, dredged more than $4 billion from government coffers.

With the fuel excise ending, Sydneysiders could see petrol prices soar back up to late-2021 prices. Picture: NCA NewsWire / Gaye Gerard

With the fuel excise ending, Sydneysiders could see petrol prices soar back up to late-2021 prices. Picture: NCA NewsWire / Gaye Gerard

Petrol stations have already bumped up prices to almost $2 a litre even before the 25 cent fuel excise levy ends on Thursday.

“There is absolutely no reason for prices to be as high as they are in Sydney today and they need to come down immediately,” NRMA spokesman Peter Khoury said.

The end in the fuel excise relief will see motorists pay around an extra 25 cents a litre which translates to an extra $15 for a 60 litre tank of fuel.

When the excise was introduced the cuts were not passed on until cheaper fuel hit forecourt tanks up to a week later. Mr Khoury said the increased excise cost should not be passed on straight away.

“Australians are already facing cost of living pressures. There is no restraint being shown by the oil companies today, so it is critical the excise isn’t passed on to customers immediately,” Mr Khoury said.

A spokesman for Ampol said: “We understand fuel is a significant cost for families and business. The increase in fuel excise will be reflected in retail prices as existing fuel stock levels carrying the lower rate of excise are used up.

Petrol remains the biggest cost of living concern among Daily Telegraph readers. Picture: Justin Lloyd

Petrol remains the biggest cost of living concern among Daily Telegraph readers. Picture: Justin Lloyd

“The major driver of fuel prices is the international cost of petrol and diesel. Retail fuel prices are also influenced by a range of other factors, including site operating costs, volume throughput and local competitive prices. Price cycles are also observed in Australian major metropolitan areas, with prices varying significantly over time.”

Mark McKenzie, chief executive of the Australasian Convenience and Petroleum Marketers Association, said prices were high at the moment because it was at the top of the monthly petrol price cycle.

“We are at the top of the cycle now and are about to enter significant discounting,” he said. The fuel excise increase will be on fuel delivered after Thursday and should not be passed on to motorists on existing discounted fuel currently in petrol station tanks.

“The question is whether high turnover stations will pass on the excise, just part of it or none of it in order to stay competitive with low volume competitors,” he said.

Extracted in full from:  https://www.dailytelegraph.com.au/news/nsw/petrol-pump-prices-to-jump-by-25c-a-litre-as-petrol-excise-relief-ends-on-thursday/news-story/158ea23ecefc30cc176f775f068ca401

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