Motorists across Australia brace for petrol price hike as government fuel discount comes to an end
Every Australian capital city is expected to face unleaded petrol prices above $2 a litre next week as motorists are slugged with another sharp increase at the bowser.
The final stage of the federal government’s temporary fuel excise relief will end at 11:59pm on Sunday, adding about 16 cents a litre to wholesale petrol and diesel prices from Monday.
A scheduled inflation-linked adjustment to the excise will add roughly another cent, taking the overall increase to about 17 cents a litre.
While the higher tax will take effect immediately, the full increase is expected to flow gradually through service stations as retailers exhaust fuel bought at the cheaper wholesale price.
No state spared
NRMA spokesperson Peter Khoury told Sunrise on Saturday no capital city would escape the rise, with average unleaded prices forecast to climb beyond $2 a litre across the country.
Diesel is expected to reach between $2.30 and $2.40 a litre, placing further pressure on households already struggling with rising living costs.
“You won’t see it immediately at the bowser. It will take time for those increases to pass across the country, but increase they will,” Khoury said.
The 16-cent-a-litre discount had been retained for an additional month after the government wound back its initial emergency fuel excise cut in July.
From Monday, the temporary relief will disappear entirely as the excise returns to its full rate.
The impact of the increase is expected to extend well beyond motorists, with higher diesel prices increasing costs for farmers, primary producers and transport companies.
Those expenses could ultimately be passed through the supply chain, adding pressure to the cost of groceries and other essential goods.
However, Khoury said prices remained well below the extraordinary peaks recorded at the beginning of the war in the Middle East, when unleaded petrol reached about $2.60 a litre and diesel climbed close to $3.30.
A recent easing in global oil prices, from more than $142 a barrel to about $133, could also help cushion some of the coming increase.
Despite that, Australians can expect the pain to build throughout next week as service stations progressively replace their existing supplies with fuel purchased at the higher wholesale price.
Drivers warned against panic buying
Khoury urged Australians not to rush to service stations or stockpile fuel before the discount ends, warning panic buying could push demand, and prices, even higher.
“Fill up when you need it. Let’s not change our behaviour,” he said.
Instead, drivers have been encouraged to compare prices before filling up, with significant differences often found between service stations in the same suburb.
Motorists can use the NRMA app and state government fuel-price platforms to check real-time prices and identify cheaper stations nearby.
Unleaded averages for capital cities
These are the current unleaded averages for capital cities.
Adelaide: 196.1 cents per litre
Brisbane: 197.0 cents per litre
Canberra: 204.3 cents per litre
Darwin: 204.4 cents per litre
Hobart: 201.0 cents per litre
Melbourne: 196.1 cents per litre
Perth: 192.4 cents per litre
Sydney: 193.3 cents per litre