State Excise Tax on Fuel Set to End September 29: Why is Fuel So Expensive?

Why Australian drivers will get an extra $15 when they fill up at the end of this month

  • From the end of September, fuel prices will increase by at least 22 cents per liter
  • September 29 marks the end of the government’s fuel tax break program
  • The ACCC said it will monitor nearly 200 sites to ensure fair fuel prices

The price of petrol will skyrocket for Australian motorists by the end of the month as those filling up a 60-litre tank will have to pay an extra $15 at the pump.

Australia’s 44-cent fuel excise tax was cut to 22 cents in a pre-election sweetener by the former Morrison government in the March budget.

At a time, global oil prices were rising after Russia’s bloody invasion of Ukraine, and the generous six-month measure was introduced to ease pressure on the cost of living.

However, Prime Minister Anthony Albanese will raise the tax again on September 29 after ruling out extending the costly scheme.

There are fears motorists could also be hit even harder by gas stations looking to raise prices under the guise of the tax hike.

Treasurer Jim Chalmers issued a warning on Sunday that Australia’s Competition and Consumers Commission will keep a close eye on companies who unfairly raise fuel prices in the coming weeks.

The price of petrol will skyrocket for Australian motorists by the end of the month as those filling up a 60-litre tank will have to pay an extra $15 at the pump

The price of petrol will skyrocket for Australian motorists by the end of the month as those filling up a 60-litre tank will have to pay an extra $15 at the pump

WHY IS FUEL GOING MORE EXPENSIVE?

From September 29, the government will end its fuel tax relief program, which saw the fuel consumption tax reduced from 44 cents to 22 cents.

The 50 percent cut cost taxpayers $3 billion.

The fuel relief program was introduced in March to combat the cost-of-living crisis as petrol prices soared after Russia’s bloody invasion of Ukraine.

But the six-month period will soon be over and Anthony Albanese’s government will raise the tax again.

Familys If you fill up two cars once a week, you’ll pay about $30 more per week, or an additional $700 over six months.

“I have directed the ACCC to step up their monitoring of fuel markets to ensure Australian motorists are getting a fair deal at Bowser,” the Treasurer said.

“Refiners, importers, wholesalers and retailers should stay informed – the ACCC keeps a very close eye on fuel prices across the country to ensure any increases are justified.”

In March, gas stations in Sydney charged 216.5 cents per liter and 212.5 cents in Melbourne.

The excise tax cuts saved drivers about $15 when they filled a 60-liter tank with unleaded fuel.

But the program also cost taxpayers about $3 billion.

The ACCC said it will use daily data from all major cities and 190 regional locations starting Sept. 29 to monitor unfair markups.

Treasurer Jim Chalmers has warned Australian companies against unfairly raising the price of fuel when the government's tax break ends on September 29

Treasurer Jim Chalmers has warned Australian companies against unfairly raising the price of fuel when the government’s tax break ends on September 29

Australia's 44-cent fuel excise tax was cut to 22 cents in a pre-election sweetener by the former Morrison government in the March budget. Pictured: Traffic in Sydney

Australia’s 44-cent fuel excise tax was cut to 22 cents in a pre-election sweetener by the former Morrison government in the March budget. Pictured: Traffic in Sydney

It will also “intensify communication with consumers about prices, including the best times to buy in their location based on information about the gas price cycle”.

Mr Chalmers has previously said it would be very difficult for the government to extend the oil tax deferral any further, despite inflation hitting 6.1 per cent in the years to June.

He said further tax cuts would only worsen Australia’s record debt, which is approaching $1 trillion.

From September 29 families If you fill up two cars once a week, you’ll pay about $30 more per week, or an additional $700 over six months.

Anthony Albanese will raise the tax again on September 29 after ruling out an extension of the fuel economy tax cut scheme

Anthony Albanese will raise the tax again on September 29 after ruling out an extension of the fuel economy tax cut scheme

“If there is more we can do responsibly, we will, but people should not assume that the cost-of-living relief provided for in the budget earlier in the year will last forever,” Mr Chalmers said last Week.

“We said that before the election. We’ve been open about it… That’s still our position.

dr Chalmers said there may be other cost-of-living relief measures in its October budget, but the fuel disruption would likely end as planned.

According to the weekly NRMA fuel report released Monday afternoon, top Sydney prices for E10, Premium 95 and Premium 98 reached 206.4, 224.5 and 230.1 cents a litre, respectively.

The 7-day average for E10 was 199.9 cents per liter.

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Bradford Betz

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