Fuel prices continue to dip ahead of upward surge

Motorists are finally feeling some relief at the bowser as average fuel prices dip to a three-month low nationally thanks to the former Coalition government slashing the fuel excise, however, the joy is likely to be short-lived as the new ALP government confirms it won’t be extending the cut beyond September.

The decision means Aussies will be faced with a drastic surge in fuel prices of at least 22.1 cents per litre – before profit margins and other retail influences are factored in – come October 1, and it largely goes without saying that consumers aren’t happy.

A recent survey carried out by CPA Australia showed 43 per cent of the population thinks the fuel excise relief should be extended for another six months, while 32 per cent think the cut should be made permanent and 20 per cent said the relief shouldn’t be extended at all.

The remaining five per cent of respondents indicated they were unsure, but the crux of the results found that 75 per cent of motorists want the relief effort to stay in one form or another, as explained by a CPA spokesperson.

“Of those in favour of an extension, the majority want it continued for six months. Some want it extended permanently,” they said.

“With inflation expected to continue to run hot, interest rates set to rise and energy bills soaring, there is a case for the relief to continue. Many households are running out of options to cut their expenses.

“Not only will Australians feel the pinch at the pump but restoring the excise rate runs the risk of sustaining inflationary pressures. Businesses will pass on the increased fuel costs to consumers, exacerbating expectations that prices will continue to climb.”

It’s for exactly these reasons that the New Zealand government has extended its own fuel excise relief effort not once but twice now, with the most recent extension stretching out to January 2023.

The Kiwis have also halved the cost of public transport.

According to Australian prime minister Anthony Albanese, the ALP government had inherited some $1 trillion of debt from the previous government and that “difficult decisions” will have to be made.

“The former government put in place a time-limited change to the petrol payments,” he said earlier this month.

“Before the election, both sides said they had no plans to increase that further into the future.

“In the long run if we don’t do something about improving the fiscal position of the budget, the impact on households will just flow on down the track.

“To extend it for another six months would cost another $3b. To extend it indefinitely would cost the budget a lot of money, and we have to weigh all these things up responsibly.”