Fuel retailers have been put on notice over petrol prices as the government prepares to reduce the fuel excise cut on July 1.
The Australian Competition and Consumer Commission (ACCC) has warned that it will closely monitor fuel prices as the changes take effect.
From July 1, the fuel excise cut announced in the wake of the Iran war will be halved from 32 cents to 16 cents, with the price passed on to motorists from midnight.
ACCC Commissioner Anna Brakey warned that the watchdog “expects fuel retailers will not attempt to take advantage of this increase in excise”.
“We will closely examine fuel price movements and market behaviour, both in the lead-up to and following the increase in fuel excise,” she said.
“We will not hesitate to take action if retailers make false or misleading statements about price movements or if there is evidence of anti-competitive behaviour.”
Treasurer Jim Chalmers said the “really important warning from the ACCC” was designed to ensure that every cent of the government’s fuel excise cut is passed on to motorists.
“It’s been really terrific to see petrol and diesel prices come down very substantially in recent months,” he said.
“In fact, this week we think for the first time both petrol and diesel are cheaper than they were before the war in the Middle East began, but people are still under pressure.
“That’s why we’re extending this fuel price relief for another month at a tapered rate to provide the cost-of-living help that people need and deserve.”
Petrol, diesel prices drop: ‘Cheapest in 5 yrs’
Australian fuel prices have finally returned to levels not seen since the Iran war began with even the cost of diesel finally dropping.
For the first time since the conflict began, prices in almost all capital cities have dropped to pre-war levels, except for Hobart.
In Sydney, the price of diesel is now $1.73 per litre, 2 cents lower than before the conflict.
In Melbourne, diesel is $1.74 per litre, 11 cents per litre lower.
One petrol station in Croydon Park was selling the cheapest petrol the city had seen in five years on Monday. Petrol was selling for $1.38 and diesel was selling for $1.55.
“We welcome the drop in petrol and diesel prices, but there’s still a lot of uncertainty in the Middle East,” Treasurer Jim Chalmers told news.com.au.
“Even with the drop in fuel prices and inflation, we know Australians are still under pressure. That’s why we’re helping with cost of living relief.
“We have extended a cut to the fuel excise, slashed the road user charge for truckies and beefed up the ACCC’s powers to impose stronger penalties if fuel retailers are found to be ripping off motorists.
Mr Albanese has previously confirmed the fuel excise cut will be extended for another month.
The excise was first introduced in April and set to expire at the end of June, with speculation it could be extended further.
The Prime Minister has confirmed the fuel excise cut will extend into July amid a shaky peace deal between the US and Iran to reopen the Strait of Hormuz.
Petrol and diesel prices will be 16 cents per litre cheaper compared to normal prices in July, expected to save drivers $11 per tank.
The cut will begin July 1 and run until August 2.
Extending the fuel excise reduction and cutting the Heavy Vehicle Road User Charge will cost about $400m.
In March, Mr Albanese announced a three-month cut to the fuel excise of 32 cents per litre alongside reducing the Heavy Vehicle Road User Charge to zero, and deferring the next scheduled increase by six months.
Gross debt is improving
Meanwhile, the latest data from the Australian Office of Financial Management reveals gross debt in 2025-26 is almost $200 billion lower than the estimate when the Albanese Government came to office.
That suggests the budget is now on track to be better than forecast in the May Budget.
“We’re delivering more cost of living relief and more help for first home buyers at the same time as we’re delivering a better budget bottom line,’’ Mr Chalmers told news.com.au.
“Lower debt and smaller deficits are the fruits of our responsible economic management.
“By getting the budget in better nick, we’ve been able to find room to cut taxes, help with the cost of living, strengthen Medicare, and invest in the future.
“We’ve made a lot of progress together, the budget is in much better shape now than what we inherited, but there’s always more work to do.”
A further $63.8 billion in savings and reprioritisations in the May Budget has taken the total since the Albanese government was elected to almost $180 billion,
Gross debt as at 30 June 2026 was $971.4 billion. This result is $197.6 billion lower than the 2022 PEFO forecast of $1,169 billion.
It’s also $10.6 billion lower than the 2026-27 Budget forecast of $982 billion.
Extracted in full from: https://www.news.com.au/finance/diesel-prices-plummet-as-government-debt-improves/news-story/53ec86e586078a67f7a0c716ce36028b
