Overview
- The federal fuel excise relief expired at midnight on Sunday, returning the tax to its full rate and adding roughly 16 cents per litre at wholesale with about one cent of scheduled indexation.
- Retail prices are expected to pass through gradually over about a week to 10 days as service stations use existing stock, with forecasts of around $2.20 per litre for unleaded and about $2.60 per litre for diesel.
- Treasury has put fuel retailers on notice and Treasurer Jim Chalmers has asked the ACCC to monitor for unexplained or rapid price rises that could prompt enforcement action.
- Higher diesel costs will hit freight, farming and supply chains first, which industry and economists say could push up grocery and other everyday prices in the coming months.
- Officials say national fuel stocks have been increased to several weeks’ supply and they urge motorists not to panic-buy, advising drivers to fill up only when needed and to compare prices.