Motorists will be hit with a price increase at the bowser as the temporary cut to the fuel excise ends. In response to the soaring oil prices due to the conflict in Iran, a 32 cent per litre reduction was applied to wholesale fuel prices from April 1.
The discount was wound back to 16 cents in July, with the support measure ending at midnight August 2. The rate will also simultaneously undergo its twice yearly inflation indexation.
Treasurer Jim Chalmers has written to the Australian Competition and Consumer Commission asking for increased scrutiny of fuel prices to ensure they weren’t being artificially inflated.
In a letter to the Australian Competition and Consumer Commission (ACCC), Treasurer Jim Chalmer asked for increased scrutiny of price increases to ensure they weren’t being artificially inflated.
“The ACCC has the powers that they need to fine … servos and suppliers up to $100 million per offence, and so servos and suppliers are on notice,” he told ABC’s RN on Monday.
“The regulator will be watching them like a hawk, and they can’t use the return to normal settings with the excise as cover for treating motorists as mugs.”
Wiping $2.9 billion from the budget’s bottom line in the first three months, Chalmers said the government did not intend for the costly discount on the fuel excise to be reintroduced.
“It has played a really important role helping to take some of the sting out of the cost-of-living pressures,” said Chalmers.
“It was never the government’s intention for that to be permanent.”
Since the end of June, on average, fuel prices have already increased by over 40 cents per litre, with most capital cities also seeing diesel prices rise by over 60 cents.
Acknowledging the international uncertainty weighing on Australians, Energy Minister Chris Bowen said the government had introduced a range of cost-of-living measures – citing cheaper medicines, tax cuts, HECS relief and TAFE support – to provide confidence, urging motorists not to panic-buy fuel.
“These weekly updates have been designed to give Australians the confidence to buy the fuel they need, no more, no less,” said Bowen.
