The average price of petrol remains 20 per cent higher than pre-war levels, as diesel drivers’ excise relief has been swallowed by oil price movements.
Australians are paying an average of 218.4c per litre for petrol as of 11am on Wednesday, an increase of 38.4c since the end of February and the beginning of US-Israeli attacks on Iran.
Average prices per litre in Australia peaked at 260.7c just before the government more than halved the national fuel excise.
Petrol then dropped to around 230c per litre within days.
The average cost for diesel remains elevated on Wednesday at 317.2c per litre nationally, according to the ABC’s aggregated data from New South Wales, South Australia, Queensland, Tasmania and the Northern Territory.
Before the conflict in Iran began, diesel customers were paying just over 186c per litre on average.
Diesel had risen to 323.6c per litre before the excise cut on March 31.
The tax break dropped about 15c from the cost per litre – but only for a matter of days as prices spiked again on April 9.
Wholesale prices moved against motorists almost immediately following the excise cut, as the market price for a barrel of diesel in Australia jumped from about $350 to $420 between April 1 and April 2, according to the Australian Institute of Petroleum.
Diesel is in shorter global supply than petrol, and Australia’s diesel prices are amongst the highest worldwide.
Trucks, mining, farming, and shipping in Australia heavily rely on diesel for production and haulage across the world’s sixth largest country.
Australia uses 30 billion litres of diesel a year, and has refinery capacity for only about four billion litres.
Before the conflict in the Middle East started six weeks ago oil prices were roughly $US56 ($A80) a barrel, before trading around $US100 ($A143) a barrel.
For every $10 increase in the price of oil, Australians pay roughly 10 cents more at the fuel pump.
Treasurer Jim Chalmers on Wednesday said the government was delivering “responsible” cost of living relief with the untargeted tax cut, estimated to cost the national budget $2.55 billion.
He was warned against doling out further handouts by the International Monetary Fund who believed “popular” spending could cost the economy further down the line.
It comes as the government this week unveiled a fresh advertising campaign advising Australians “every little bit helps” in the national crisis.
It was accompanied by a series of fuel-saving tips on an official website.
The ads suggest Australians use public transport, ride bikes and inflate their tyres to reduce rolling drag, amongst other recommendations.
A suggestion to remove roof-racks, falling under the “minimising aerodynamic drag” advice on the fuel tip website, faced criticism from TV hosts Laura Jayes and Nat Barr as well as Coalition and crossbench figures.
The campaign is estimated to cost $20 million to the taxpayer.
Energy Minister Chris Bowen suggested the government was not aware exactly how the advice would affect the nation’s fuel stocks.
Asked whether the government “has a sense of what the actual impact” on fuel reserves would be, Mr Bowen said the government had not counted “any particular meta-impact”.
“Look, on the modelling, I mean obviously – and there’s footnotes on the website about where that comes from – we do know what sort of impact it has on individual use,” he said.
“We haven’t counted on any particular meta-impact in terms of scenario planning.
“We certainly, as we’ve been saying all the way along, [believe it] sensible if people can do things to reduce fuel use to do it.”
He defended the spend as community advice, saying Australians could adopt the suggestions if they felt like it.
“It’s just useful community information that we encourage people to look at, and if it suits you, take it up by all means,” he said.