Overview
- The federal government confirmed the temporary cut to the fuel excise will end at 11:59pm on Sunday, Aug. 2, restoring the tax to its higher indexed level.
- That final step adds about 16 cents a litre at wholesale plus roughly one cent from inflation indexation, for a total rise of about 17 cents a litre entering the supply chain.
- Retail increases will not be immediate because service stations will sell existing cheaper stock first, but motoring groups and analysts expect full pass-through in about a week to 10 days.
- Industry forecasts say every Australian capital city is likely to see regular unleaded above $2 a litre next week and diesel around $2.30 to $2.40 a litre, with higher diesel costs raising freight and grocery prices.
- The cut was introduced in April after Strait of Hormuz disruptions, cost an estimated $2.55 billion, and prompted criticism from economists even as the government says higher stockpiles and alternative supply routes have strengthened fuel security.