Petrol prices on track to top $2 a litre as Bowen sounds death knell for fuel excise relief
Summary
Petrol prices in Australia are expected to rise above $2 per litre after a temporary fuel tax discount ends on August 3. The government confirmed it will not extend the discount, which helped lower prices during recent global oil price spikes caused by renewed conflicts involving Iran and the US.Key Facts
- The fuel excise discount was cut from 32 cents to 16 cents per litre in July and will end completely on August 3.
- Ending the discount will add about 16 cents per litre to wholesale fuel prices, increasing the cost of a full 55-litre petrol tank by roughly $8.80.
- Petrol prices have already risen above 190 cents per litre in all Australian capital cities, with some above 200 cents, and diesel prices are also increasing sharply.
- Rising global oil prices, due to conflicts near the Strait of Hormuz between Iran and the US, have pushed Brent crude oil prices from around US$70 to nearly US$90 per barrel.
- Analysts warn oil could reach US$100 per barrel if the conflict continues, potentially driving petrol prices even higher.
- The fuel excise discount helped keep inflation lower and supported household spending during economic weakness.
- The government assures there are ample fuel supplies, with about 40+ days of fuel stocks and over 3 billion litres being shipped to Australia in the coming weeks.
- Energy Minister Chris Bowen advised against panic buying and emphasized that fuel orders are secure through October.
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