Fuel excise discount extended for another month, but at reduced rate
Australians will receive a 16 cents per litre reduction on fuel throughout July in an extension of the fuel excise cut, but savings at the bowser will be less than they have been in recent months.
A three-month excise relief program was first announced in March, aimed to balance the rising cost of fuel following the start of the war in Iran and closure of the Strait of Hormuz impacting supplies.
The Albanese Government has announced it will extend the fuel excise discount for another month. Louise Kennerley
It was originally a 26.3 cents per litre discount on petrol and diesel, which was due to expire at midnight on June 30.
Now, the government’s announced the relief will be extended until August 2, but the discount won’t be as significant.
The government is giving Aussies 16 cents per litre off petrol and diesel instead.
This means prices at the bowser could rise, but the excise is still expected to save Aussies around $11 for a 65 litre tank, according to the government.
The Heavy Vehicle Road User Charge, which was temporarily suspended as part of the fuel excise cuts, will return but will be set at 16 cents throughout July.
Now, the relief will be extended until August 2, the government announced tonight, but the discount won’t be as significant. Getty Images
That’s a 16.4 cent per litre discount on the charge, which sat at 32.4 cents per litre before the March changes were announced.
The announcement comes following mounting pressure for Prime Minister Anthony Albanese to extend the cost-of-living relief measure for Australians, alongside fears of fuel hoarding if the excise were to be canned.
“Today’s decision recognises that despite the welcome and substantial drop in the price of petrol recently, we know people are still under pressure,” Albanese said.
“We’ll continue to do what we can to shield Australians from the worst impacts of this conflict including securing additional fuel from our partners.”
Prices at the bowser may rise in July because the fuel excise discount is changing from a 26 cent cut to a 16 cent cut. Dylan Coker / SMH
Reducing the discount instead of removing it altogether will help manage demand at service stations, the government said, amid fears panic buying seen earlier in the year could return.
“This extra month of fuel discount will help Australian motorists and businesses with the cost of living as this support tapers off,” Treasurer Jim Chalmers said.
State and territory governments have so far paid for 5.7 per cent of the fuel excise cut using GST revenue.
The government said it hopes jurisdictions will again come to the table to help fund the $400 million fuel excise cut extension when National Cabinet meets on Monday.
The lower excise rate is expected to passed onto motorists at the bowser, with the ACCC continuing to monitor fuel prices.
Australia has more fuel on-shore now than it did before the crisis, according to the Prime Minister, who today confirmed an extra $50 million litres of diesel is making its way to Australia.
Petrol and diesel in the nation’s five largest cities are averaging $1.64 and $1.95 per litre, respectively, according to the ACCC’s weekly fuel price monitoring report.
As of June 16, Australia had 44 days supply of petrol, 32 days worth of jet fuel and 39 days of diesel available.
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