Fuel prices are set to surge above $2 per litre for unleaded within weeks, with Labor’s excise cut now all but certain to be scrapped at the end of this week.
Despite the ongoing conflict in the Middle East, Prime Minister Anthony Albanese confirmed yesterday continuing the 16-cent-per-litre excise cut on diesel and petrol was “not in our planning”.
A biannual increase will also increase the levy by a further 1.5 cents per litre on August 3.
“Usage has come down and is indeed lower than it was a year ago as well,” the Prime Minister told the ABC. “That’s a good thing.”
As it stands, the national average price of unleaded is $1.85 a litre, and $2.25 per litre for diesel. This means prices could increase to $2.03 and $2.43 per litre, respectively, once the excise cut is removed and the indexation bump is applied.
NRMA spokesman Peter Khoury said fuel prices “will go up” following the return of the excise, though the change would not be immediate.
Servos in regional areas should feel prices increase slower as bowsers take more time to use up the fuel.
“We largely expected the government would return the excise … They had to do it at some point,” Mr Khoury said.
“The biggest factor pushing up prices is the conflict in Iran.
“We need the war to end and the Strait of Hormuz to open, and only then will we see meaningful relief at the bowser.”
While prices will rise, fuel stocks in Australia remain stable. As of Saturday, Australia has 42 days of petrol, 38 days of diesel and 32 days of jet fuel in stock.
Energy Minister Chris Bowen said there was a combined 6.2 billion litres of fuel in Australia, representing 15 per cent more since the war broke out on March 1.
Mr Albanese has also refused to say whether US President Donald Trump was hurting the Australian economy. He said his job was to “deal with things as they are”.
“The longer (the war) goes, the bigger the conflict, the (larger the) impact will be,” he said. “This is a war on the other side of the world. We are not protagonists in it but we are impacted by it.
“We’ve consistently called for a de-escalation.”
Extracted in full from: https://www.dailytelegraph.com.au/truecrimeaustralia/police-courts-nsw/australian-fuel-prices-times-up-for-cheap-fuel-with-tax-back/news-story/0a5ddfb83e20ca518811bfe1e5764344
