PETROL prices are expected to jump on September 29 when the fuel excise cut ends.

The fuel excise is a flat sales tax levied by the Australian Government on petrol and diesel bought at the bowser.

In March this year, the previous government halved the fuel excise rate from 44.2 cents to 22.1 cents in every litre of fuel purchased.

This was implemented to reduce the cost-of-living pressures experienced by Australian households and small businesses.

Treasurer, Jim Chalmers, has addressed the upcoming return to the full fuel excise during a media conference in Canberra recently, saying they needed to address government debt.

“We’ve been incredibly upfront before the election, during the election, and after the election that we consider it too expensive to continue that petrol price relief forever,” he said.

Melbourne petrol prices have hit their lowest point since November last year, retailing in the low 150s in the past two weeks.

It comes after retail petrol prices hit 14-year highs in the June quarter – at times topping 230 cents per litre – and just weeks before the fuel excise cut ends.

Australasian Convenience and Petroleum Marketers Association chief executive, Mark McKenzie, said the return of the full fuel excise on September 29 will increase fuel prices by about 25 cents per litre. 

Hamilton motorists aren’t too happy about the relief discontinuing due to the fear that fuel prices will reach the highs we have seen over the last year.

To locals, fuel is not an optional luxury as it’s an essential component of people’s livelihoods and access to services in rural areas.

Some locals have taken to irony to cope with the cost-of-living pressure.

“When I’m paying $10 for lettuce, I reckon I’d better be grateful that fuel is only going to about 180 cents a litre,” one local told The Spectator.

Following the excise reintroduction, the Australian Competition and Consumer Commission (ACCC) will be monitoring wholesale and retail prices to ensure there are no misleading statements on price movements or evidence of anti-competitive behaviour (such as price collusion) made by retailers.

Apps such as ‘Petrol Spy’ can be downloaded onto your phone to check local fuel prices and compare retailers in your area.

The RACV website also has a handy fuel price map available to compare retailers in your area and the RACV map also tells you how these prices compare and whether prices are trending upwards or downwards.

Go to racv.com.au/on-the-road/driving-maintenance/fuel-prices to use the fuel prices map.