Geelong motorists hoping for immediate fuel relief on Wednesday will be disappointed, with service stations warning it may take days before prices drop at the bowser.
The federal government announced on Monday it would halve the fuel excise on petrol and diesel for three months from April 1.
This will reduce the cost of fuel by 26.3 cents per litre, making the cost of filling up a 65L tank about $19 cheaper.
However, APCO director Peter Anderson said service stations would need to clear their existing fuel inventory, purchased at the higher excise rate, before passing on the savings to customers.
“We’ve got over 4 million litres under the ground as of midnight last night,” Mr Anderson said.
“Now we’re going to avoid buying as much fuel as we possibly can. It’s a double edged sword.”
He predicted it would take just under three days before customers see fuel prices decrease at APCO stations.
“I’m hopeful that something can get through before Good Friday.”
Mr Anderson said companies had gone from buying as much fuel as they could, to now trying to “pick up as little fuel as possible, without running out”.
Treasurer Jim Chalmers urged motorists to remain calm.
“First of all, it’s really important to remember that the excise cut is levied to or applied to wholesale fuel sales,” Mr Chalmers said.
“So the full 26 (cents) won’t show up at 12.01am tonight.”
Motorists should therefore expect the savings to take “somewhere between maybe one and two weeks for the full benefit” to flow through, he added.
“I want to manage expectations on that front, because people shouldn’t rock up at five past midnight tonight and expect to see the full benefit passed on,” he said.
“Obviously, we’ll make sure, via the (Australian Consumer and Competition Commission) that the benefit is passed on as is appropriate. People shouldn’t be taking motorists for mugs when it comes to passing it on.
“I’ve written to the chair of the ACCC to set the expectations on this front.”
Speaking on ABC Radio on Tuesday, Australasian Convenience and Petroleum Marketers Association chief executive Rowan Lee was asked how motorists could trust service stations to genuinely pass on the fuel excise savings.
“ACCC has complete visibility of both the wholesale and retail prices right across the country,” Mr Lee responded.
“People can do their own sort of research but the ACCC will be keeping a very close eye on retailers and wholesalers,” he said.
He recommended motorists use apps such as Petrol Spy and Motor Map to look out for the best prices in the upcoming weeks.
Extracted in full from: https://www.adelaidenow.com.au/news/why-you-will-not-see-the-promised-26cent-fuel-price-cut-yet/news-story/d5d0bbac6c1bb24cf39ef600776527dd
