Fuel prices to fall another 5.7 cents a litre after states and Canberra strike GST deal | Petrol prices

A deal with states to refund GST revenue from fuel sales would cut the price of gasoline by a further 5.7 cents over three months, bringing the total discount to 32 cents a liter after fuel duty is halved this week.

The government said the 26.3 cent cut in fuel duty and the GST deal would reduce the cost of fueling a 65-litre vehicle by around $23.

Progress on the deal comes as the consumer watchdog said it had issued notices to businesses operating in South Australia, Western Australia, Queensland and the Northern Territory demanding they justify huge fuel surcharges imposed on deliveries to remote areas.

Businesses have three weeks to respond to legal notices from the Australian Competition and Consumer Commission. The watchdog has promised strong action against companies engaging in price gouging.

“We have seen an increase in complaints from consumers and small businesses about the introduction or increase of fuel surcharges, including surcharges of more than 70 per cent on small businesses serving remote communities,” ACCC chair Gina Cass-Gottlieb said.

Speaking at the National Press Club, Anthony Albanese said the GST changes had already been passed.

“We want this additional relief to start appearing at gas stations immediately,” the Prime Minister said.

Gasoline and diesel prices had already fallen by about 20 cents as retailers implemented consumption cuts with unexpected speed.

New data from the NRMA showed average prices in each capital city fell below 240 cents per liter for unleaded fuel and 310 cents per liter for diesel.

Unleaded prices averaged 236.6 cents per liter in Sydney, 237.7 cents in Melbourne, 236.4 cents in Brisbane, 232 cents in Hobart and 234.5 cents in Canberra.

State and territory leaders agreed to the GST deal at a meeting on Thursday.

A joint statement issued by chief ministers and chief ministers said governments “should not benefit from the extra GST paid due to higher fuel prices, but should instead ensure that this amount is channeled back into society to support them through a difficult time”.

NSW premier Chris Minns said he “welcomes the agreement to refund drivers the extra GST collected from higher fuel prices.”

“This gives drivers some peace of mind and helps reduce high fuel costs.”

A national cabinet meeting on Monday signaled a plan to return the “windfall” of the GST to Australians; This was followed by days of wrangling between state and territory leaders over how to implement the measure.

Halving the fuel tax would cost $1.5 billion, while refunding the GST on fuel to drivers is expected to cost another $400 million.

Queensland treasurer David Janetzki said the state was “playing its part” in securing a federal GST deal to further reduce fuel prices.

Queensland had previously stated that it wanted to use the additional GST generated from high fuel prices to alleviate the direct living costs of local people, and was the state that left this situation behind.

It signed a national fuel agreement on Thursday.

“Queensland’s position from the outset has been to avoid unexpected consequences from high fuel prices, and how this can be calculated, collected and distributed has been streamlined after today’s meeting,” Janetzki said.

“Work will continue throughout the budget process to continue to deliver targeted cost of living measures that Queenslanders can rely on.”

Albanese gave a rare national address to reassure Australians that the government was taking steps to ease the fuel crisis caused by the US-Israeli war against Iran.

The cut in petrol prices comes just ahead of the long weekend, with Albanese giving drivers a “warning but not alarm” message.

“If you’re hitting the road, don’t take more fuel than you need; just fuel up as you normally would. Think of others in your community, the forest, and critical industries.”

“And if you can take the train, bus or tram to work in the coming weeks, do so. This builds our reserves and saves fuel for people who have no choice but to drive.”

Despite Bowser’s welcome relief, there are real concerns that the conflict in the Middle East will drag on for months rather than weeks and Australia may have to start rationing fuel at some stage.

Former Treasury secretary Martin Parkinson warned this week that “the consequences of this war” and “the forces unleashed by this war will have long-lasting effects”.

Even if the war ended tomorrow, the practical realities of restarting and repairing oil and gas infrastructure, loading and transporting ships to and from the Middle East, and moving in and out of the Middle East meant that “it would take a significant amount of time” for trade through the Strait of Hormuz to restart to pre-conflict levels, Parkinson said.