You may have grown accustomed to this new era of petrol prices, but there are more changes in store.
Costs are set to jump again soon when a key cost-of-living measure is wound up.
Despite pleas from charities and advocacy groups, the federal government has confirmed it is pressing ahead with its plan to remove the fuel excise discount at the end of September.
The cut was initially introduced by the Morrison government in the May budget to help tackle the increasing pressure on household budgets.
The move will add a whopping 22 cents per litre to the price of fuel.
Read: Nine bad habits that are costing you money
Prime Minister Anthony Albanese told radio station 2GB that although he would like to keep the discount in place, the cost to the budget was too high.
“We are examining it. We can’t do everything we want to do,” he said.
“We’re having a look at the circumstances which are there, but we have made it very clear that with regard to petrol, the cost [to] the budget is so enormous. I just can’t see a way through on that issue.”
It’s estimated the fuel excise discount has cost around $3 billion in the five months it has been in place.
The PM added that the government was facing more than $1 trillion in debt and fiscal responsibility was needed.
Read: Seven tips to help Aussies feeling the pinch of rising inflation
“We have to make decisions based on a limited amount of money,” he said.
“We have to get the budget back on track.
“If we’re going to do issues like cheaper childcare, if we’re going to offer support for cheaper medicines, which we will, then you can’t just continue to not worry about the budget.”
The price of petrol has been declining over the past month, with data from the Australian Institute of Petroleum showing the average retail price across capital cities was 172.4 cents per litre – a far cry from the peaks of more than 240 cents per litre.
Read: Australians spending their super to pay for healthcare
But the return of the full fuel excise will push prices back over the $2 mark in many locations.
There has been no respite in the other factors causing petrol prices to rise, namely, COVID’s continuing effects on global supply chains and the Russian invasion of Ukraine affecting oil supplies.
Economics professor David P. Byrne told the ABC he could not see petrol prices in Australia coming down substantially until the situation in Ukraine was resolved.
“I unfortunately don’t have a crystal ball, but we can expect high petrol prices for as long as the war in Ukraine is going on,” he said.
“My guess is that we’re in for high petrol prices for the remainder of 2022 and likely well into 2023.”
What are petrol prices like in your area? How will the removal of the fuel excise discount affect your budget? Let us know in the comments section below.
If you enjoy our content, don’t keep it to yourself. Share our free eNews with your friends and encourage them to sign up.
If all those complaining about high petrol prices took a few simple steps to drive more economically they could easily save more than the government excise. Just don’t accelerate as hard, don’t sprint off from the lights when you can clearly see the next lights a few hundred metres ahead have just turned red. don’t drive 5 kays over the speed limit, etc. As they say, it aint rocket science. You will also emit less carbon too!
Also, don’t drive out of your local area, be it metropolitan or regional. If you live on a remote farm – STAY THERE. That way, you’ll use even LESS of your petroleum product and save even more money.
I mean, it’s all about the money, isn’t it? Nothing REALLY to do with convenience or necessity.