Pain at the pump is set to return as the Federal Government’s fuel excise cut will end at midnight, prompting Perth retailers to raise prices above $2 per litre. The average cost for unleaded fuel in metropolitan areas is expected to rise from 192.1 cents to 194.9 cents per litre. This follows a gradual reduction in excise, which was slashed from 52.6 cents to 20.6 cents per litre in April to mitigate impacts from the Iran war on fuel supplies. While Premier Roger Cook has assured that there won’t be an immediate significant increase, many drivers expressed concerns and frustration over the price hikes. Federal Treasurer Jim Chalmers has instructed the ACCC to monitor fuel prices closely to ensure any increases are justified, emphasizing the government’s commitment to managing cost-of-living pressures as households face rising expenses.
Why It Matters
The end of the fuel excise cut is significant as it comes amidst global instability affecting fuel prices, including the ongoing conflict in the Middle East, which has led to record highs for both unleaded and diesel fuel. Since the initial excise reduction in April, prices have fluctuated, with unleaded fuel dropping as low as 136.5 cents per litre. The return to full excise will likely exacerbate existing cost-of-living pressures for households already grappling with inflation, which has been a persistent issue in Australia for over four years. The government’s actions and the response of the ACCC will play a crucial role in maintaining market stability and protecting consumers from potential exploitation by fuel suppliers.
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