Fuel prices set to soar as government excise duty cut ends

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Drivers are being warned to prepare for rising gas prices as the federal government is steadfast in ending fuel excise duty cuts.

In March, fuel excise duties were halved for six months by the previous coalition government.

This was in response to soaring fuel prices, with the reduction slashing 22 cents per liter of gasoline.

Despite pressure to extend the temporary measure beyond its six-month deadline, the new Labor government has insisted the full levy will be reinstated, meaning it will run out by the end of September.

Authorities are urging motorists not to panic in the coming weeks before the excise duty ends.

Petrol station owners have ordered more stock to cope with the increase and are reminding the public not to overstock gasoline while the price is lower.

The fuel excise reduction has seen the usual fuel excise cut from 44.2c/L to 22.1c/L.

But the Albanian government will not budge from ending excise cuts on September 28, saying the program has cost more than $3 billion so far.

It’s a financial burden the Labor Government can no longer bear, meaning that from midnight September 29 the fuel tax will rise by more than 20c.

While that may not sound like a lot, an increase in fuel excise will see motorists spend around $11 more each time they fill a standard 50-litre tank.

In July, Prime Minister Anthony Albanese said that while he wanted to extend it, neither Labor nor the Liberals could promise an extension of the excise duty cut before the election.

“And those are the circumstances that we have to deal with. We can’t do everything that we would like to do,” he said.

“So we have some tough decisions to make.”

Mark Mckenzie, CEO of the Australasian Convenience and Petroleum Marketers Association, said motorists can expect to see an initial increase in costs in the coming days as fuel suppliers replace their stock with the higher excise fuel .

At its peak, Australians were paying between $2 and $3 a liter of petrol, peaking at the start of the Russian invasion of Ukraine.

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