Fill up now: driver warning before fuel excise slashed
Holidaymakers are being urged to fill up their cars now to save money on cheaper petrol before fuel duty rises.
Victoria Automotive Chamber of Commerce president Peter Jones warned drivers to get on the road early before the price increase was reflected on petrol vehicles.
“Motorists are already under cost-of-living pressure so if you need fuel it makes sense to refuel before the increase happens,” Mr Jones told AAP on Tuesday.
“But we also ask people to be respectful. Service station staff are doing their jobs and should not be blamed for fuel prices they cannot control.”
The Australian Competition and Consumer Commission has warned fuel retailers that it will monitor fuel prices closely as the changes come into force.
Oil prices have fallen to their lowest levels since the conflict in Iran began in February, but are expected to rise again on Wednesday as fuel taxes increase by 16 cents per liter.
The consumption tax, still reduced from the standard rate of 52.6 cents per litre, will remain in place until August 2 to protect motorists from the impact of high global oil prices.
This represents a halving of the 32 cents per liter discount implemented in April and represents a savings of around $11 if a car is filled with a 64-litre tank.
Unleaded petrol prices averaged $1.54 per liter in Melbourne, $1.55 per liter in Brisbane and $1.50 to $1.58 per liter in Sydney on Tuesday.
This comes as many Australian states are on school holidays or approaching the winter holidays.
Amid cost-of-living pressures, many families are choosing to stay closer to home, opting for destinations that are an easy drive from where they live.
Victoria, Queensland, the ACT and NT are already on school holidays, and NSW, South Australia and Western Australia start their holidays on Monday.
Tasmanian schools don’t start mid-year holidays until July 11. The Australian Competition and Consumer Commission recently wrote to fuel retailers reminding them not to take advantage of consumption tax increases to make profits at the expense of consumers.
“We will closely examine fuel price movements and market behavior before and after the fuel excise tax increase,” 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 behavior.”
Finance Minister Jim Chalmers said the reduced fuel tax provided cost of living relief at a time when households were under financial pressure.
“Fuel prices have come down very significantly and very nicely,” he told reporters.
“Our fuel excise tax cut is part of the story, but we have also seen positive developments in global oil markets in the Middle East.”
Mr Jones said the decision to reduce fuel tax relief rather than ending it immediately was a sensible short-term measure.
“This phased approach is welcome because it recognizes that fuel price pressures will not disappear overnight,” he said.
“A sharp return to full fuel excise duty would add another cost shock at a time when many car businesses are already struggling to manage higher operating costs.”
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