The end of Australia’s fuel excise relief may trigger higher prices at the bowser, with Brisbane, particularly in areas like Kenmore that are already experiencing higher than average prices, bracing themselves for the possibility of further hikes.
For the last six months, the national fuel excise tax has afforded service stations a 22-cents discount on unleaded petrol to cushion motorists with the rising cost of living.
Experts say the average price for unleaded petrol may reach $2.13 once the full fuel excise is reinstated to 44.2 cents after September 2022.
Revenue from the excise tax is used for vital road safety upgrades and infrastructure.
Analyst Geoff Trotter of Fueltrac said that petrol companies will theoretically raise prices by 30 cents per litre in a week or two, with the average price at $1.88 per litre. Some experts believe that prices could soar to $2 per litre in the next few weeks.
Photo Credit: Fuel Radar
As of 27 Sept 2022, Moggill Road service centers EG Ampol Kenmore and Ampol Foodary Kenmore are selling unleaded petrol at 195.9c p/l.
The cheapest source, selling at 181.7c p/l, is found at United Sherwood along Sherwood Road, a 9-km ride from Kenmore.
Mr Trotter also said that prices will rise because there will be no supplies coming from Russia, a major supplier of diesel and heating oil. The market has remained volatile following the war in Ukraine thus prices are harder to forecast as well.
On Why the Price Hike May Not Happen
Treasurer Jim Chalmers, however, said that motorists would not be saddled with the price hike as the Federal Government has purchased and stockpiled litres of petrol at lower prices in anticipation of the end of the fuel excise relief.
In a press briefing, Mr Chalmers said, “You would have seen industry estimates that there would be more than 700 million litres of lower excise fuel in the system. This is 700 million reasons why the price should not shoot up by the full 23 cents on the night the excise ends.”
Brisbane Fuel Price Monitoring
The Australian Competition and Consumer Commission has been tasked to monitor the price increase and ensure that motorists are not on the losing end. Below is an ACCC chart tracking the price of unleaded petrol in the last 45 days.
Consumers are advised to compare fuel prices using price monitoring apps before filling up.