Australian petrol prices are expected to rise above $2 per litre and diesel above $2.40 as a 16-cent per litre fuel excise discount ends on Sunday. Energy Minister Chris Bowen stated the relief measure, intended as temporary, will not be extended. This marks the end of a six-month measure introduced to ease cost-of-living pressures.
Australian motorists are bracing for a significant increase in fuel costs as the federal government's 16-cent per litre fuel excise relief measure concludes on Sunday. Petrol prices are projected to exceed $2 per litre, with diesel expected to surpass $2.40 per litre. Energy Minister Chris Bowen confirmed that the excise relief, which has been in place for six months, will not be extended. Bowen emphasized the temporary nature of the measure, which was implemented to provide relief during a period of high inflation and cost-of-living pressures. The decision to end the discount is expected to add approximately $3 to the cost of filling a 60-litre petrol tank and $4 to a 70-litre diesel tank. This change comes as global oil prices have stabilized somewhat, but the Australian government aims to return to its pre-relief budget settings. The excise was halved for six months in March, costing the budget an estimated $3 billion. The government has indicated that future decisions on fuel excise will be considered in the context of budget repair and infrastructure funding.