Petrol prices around Australia will rise as soon as a cut to the fuel excise is removed on Sunday, experts warn.
The fuel excise, the tax Aussies pay on fuel, will rise by 16 cents per litre this weekend after the government ruled out extending the cut that began in April.
Fuel prices could skyrocket from Sunday. Louie Douvis
These changes will filter through straight away, giving Aussies pain at the petrol pump.
“Motorists can expect to pay around 17 to 18 cents more per litre,” Swinburne transport expert Professor Hussein Dia said.
“That would add roughly $9 to a 50-litre fill or about $11 to a 65-litre tank.”
Dia warned this could see drivers rush to the bowser on Saturday to fill up before the prices spike.
“There may be a rush to fill up this weekend, particularly among households and businesses with large fuel requirements,” he said.
However, Dia urged drivers to be responsible when filling up.
“My advice would be that motorists who are already due to fill their tanks may sensibly do so before Monday, but there is no need for panic buying,” he said.
He said there are multiple factors behind the expected increase in the price of fuel in Australia, but he insisted the tax changes would have a “measurable” impact.
The cut to the fuel excise was supposed to end on July 1, but was extended for an extra month as the global price of oil remained unstable due to the continuing Middle East war.
However, the government said it was focused on providing more long-term cost of living relief for Australians, instead of extending a measure that was always designed to be temporary.
“It was taken initially when those prices for petrol in particular skyrocketed after war in the Middle East,′ Finance Minister Katy Gallagher told The Today Show on Thursday.
“Always central to our thinking [is] how do we provide cost of living help without adding to some of the inflationary pressure we’re seeing in the economy.”
The cost of oil continues to change erratically, and as the war shows no sign of ending, supply chains remain disrupted.
Dia said this would compound price rises to fuel in Australia.
“If elevated international oil prices, insurance costs and shipping disruptions persist, they could place additional pressure on Australian petrol and diesel prices over the coming weeks,” he said.
“Disruptions to major energy and shipping routes eventually flow through to Australian households and businesses.”