Petrol prices won't jump after end of fuel discount, Treasurer says

Motorists shouldn't be confronted with a spike in petrol prices when the 22 cent fuel tax relief ends next week, Treasurer Jim Chalmers says.

He reiterated today the Albanese Government was making a difficult but necessary decision to end the temporary halving of the fuel excise that was brought in by the former Coalition government.

The discount is set to end at 11.59pm on Wednesday, September 28.

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But Chalmers insisted the millions of litres of fuel purchased at cheaper prices and stockpiled should ensure there won't be a jump in bowser prices.

"We've been working closely with the servos and suppliers to understand that there are hundreds of millions of litres of fuel underground in tanks that was purchased at the lower price," he said.

"The ACCC and the government expect that the price of petrol shouldn't shoot up at the bowser on Wednesday night by the full 23 cents if the normal market pressures are in operation."

"Today you would have seen industry estimates that there would be more than 700 million litres of lower excise fuel in the system. This is 700 million reasons why the price should not shoot up by the full 23 cents on the night the excise ends."

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Chalmers also said fuel prices were 50 cents per litre cheaper than the peak in July.

He said it was a tough decision to end the fuel excise relief but stressed the government was committed to responsible spending at a time of major budget pressures.

The federal government has asked the Australian Competition and Consumer Commission (ACCC) to monitor whether motorists are being ripped off over the coming month as fuel prices increase.