Drivers are rushing to fill up their cars before the fuel excise cut is halved on Wednesday. Some bowsers are pumping fuel at the cheapest price in years, as the watchdog warns petrol stations face penalties if they unfairly hike prices.
Fuel Excise Cut to Halve on July 1
The fuel excise cut will drop from 32 cents to 16 cents on July 1 as the national relief scheme is partially extended throughout July. The excise cut is expected to result in $11 of savings for motorists filling up a 65L tank, Treasurer Jim Chalmers said.
Unleaded petrol prices in Sydney have dropped to their lowest levels since the pandemic lockdowns of 2021, with the price of unleaded fuel averaging $1.52 per litre across the city on Monday. Prices were as low as $1.38 at Metro Petroleum Croydon Park, according to tracking by Motormouth.
Motorists Share Relief at the Pump
“A little while ago, I was paying nearly $3, and now I’m paying a $1.62, so yes it is a big difference,” one ute driver told The Morning Show while filling up at a service station on Churchill Rd in Adelaide on Tuesday. “It’ll go up, I suppose, but I’m hoping it won’t go as high as it was.”
Watchdog Warns Retailers ‘Not to Take Advantage’
The partial continuing of the fuel excise could trigger a rise in retail petrol prices, but other factors such as international refined price movements could also balance out those costs. Shipping through the Strait of Hormuz has returned to normal levels, with more than two dozen commercial vessels transiting in the past 24 hours, according to MarineTraffic data.
“Fuel retailers may not face higher costs straight away on July 1 as new fuel supplies can take time to reach them,” the Australian Competition and Consumer Commission (ACCC) said. The ACCC wrote to fuel retailers late last week reminding them “not to take advantage of the partial restoration in excise to profit at the expense of consumers”.
“We will closely examine fuel price movements and market behaviour, both in the lead up to and following the increase in fuel excise,” ACCC Commissioner Anna Brakey 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.”
