Australian motorists have been warned petrol prices could rise significantly this week as the Albanese government starts to wind back its cuts to the fuel excise.

Australian motorists have been warned petrol prices could rise by up to 16 cents per litre in the coming days as the Albanese government starts to wind back its cuts to the fuel excise.

The excise discount will be halved from 32 cents to 16 cents from Wednesday, before being fully removed in August.

Australasian Convenience and Petroleum Marketers Association (ACAPMA) chief executive Rowan Lee said motorists will soon see higher prices trickle through to their local pumps this week.

“The cost at the bowser will start bleeding through over the next few days,” Mr Lee told 4BC Brisbane’s Shane Doherty on Tuesday.

“In some rural or remote areas, it might take a week or 10 days.

“But as those tanks are replenished underground, you’ll start seeing the excise being seen at the bowser again.”

Mr Lee outlined that from Wednesday, the price for unleaded petrol will begin to increase to up to 16 cents per litre.

“The market basically peaked… on May 17, when [the] average price in Brisbane for unleaded was 189.9 (cents per litre). Yesterday, it was 155.4,” he said.

“So over six weeks, it’s come down 34 cents per litre. Tomorrow, it will start going up by about 16 per cents litre.”

The Albanese government earlier this month announced legislation had been introduced to extend the fuel excise discount, but at a reduced rate, until August 2.

“This will cut fuel excise on petrol and diesel by 16 cents per litre, saving Australians around $11 on a 65 litre tank,” Treasurer Jim Chalmers said in a June 22 statement.

Legislation to extend the discount passed through parliament on Monday.

“This extension of the fuel tax cut recognises there’s still a lot of uncertainty in the Middle East and the global economy more broadly, and our action provides a graduated return to normal settings for the fuel excise,” a joint statement from Mr Chalmers and Prime Minister Anthony Albanese said.

The initial fuel excise discount was announced in March amid a spike in global fuel prices, following the outbreak of the US-Iran war.

The NRMA is set to provide an update on wholesale unleaded petrol and diesel prices on Wednesday afternoon.

Extracted in full from:  https://www.skynews.com.au/business/energy/aussie-drivers-brace-for-16cperlitre-petrol-price-hike-within-days-as-the-albanese-government-winds-back-the-fuel-excise-discount/news-story/b7ad8b67c98aece44b536873d860c1bc

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