Drivers will lose their fuel discount from Monday after the government officially confirmed the fuel excise relief will end as planned, despite escalating pressure on global oil prices due to the war in Iran.<\/p>\n
The original 50 per cent discount, which knocked 32 cents off each litre of petrol, was dropped back to 16 cents from July and is scheduled to end on August 2.<\/p>\n
Treasurer Jim Chalmers said it was “never the government’s intention” to make the scheme permanent.<\/p>\n
“The fuel excise relief will end at midnight on Sunday,” he said.<\/p>\n
“It has played a really important role helping to take some of the sting out of the cost-of-living pressures.<\/p>\n
“It was never the government’s intention for that to be permanent.”<\/p>\n
Track the latest petrol and diesel prices around Australia<\/a><\/p>\n See what’s happening with petrol and diesel prices near you, updated constantly.<\/p>\n He said the discount was being binned at the start of the month “deliberately” to create a smooth downward taper from its original relief of 32 cents.<\/p>\n The Heavy Vehicle Road User Charge discount will also end on Monday.<\/p>\n Last week oil prices crept over $US100 a barrel for the first time since May. It dipped back down to $US86.36 a barrel on Wednesday.<\/p>\n It comes amid a fresh escalation in the conflict between the United States and Iran as a memorandum of understanding between the two has unravelled.<\/p>\n Treasury warns world has ‘weaker buffers’<\/p>\n The confirmation comes despite a warning from Treasury that the world had depleted reserves and had “weaker buffers” to absorb ongoing disruptions to oil supply.<\/p>\n