Petrol prices tipped to rise as fuel excise cut is reduced, ACCC warns retailers

Motorists are being warned to expect petrol price increases from July 1, as the Federal Government scales back its temporary fuel excise relief.

From midnight, the excise cut introduced following the Middle East conflict will be reduced from 32 cents per litre to 16 cents per litre, before ending on August 2.

The change is expected to deliver about $11 in savings for motorists filling a 65-litre tank, Treasurer Jim Chalmers said in a June 22 statement.

“This extension to the fuel tax cut recognises that economic and fuel stability recovery will take time, and our action provides a graduated return to normal settings for the fuel excise,” he said.

The Australian Competition and Consumer Commission (ACCC) has put fuel retailers on notice ahead of the change, revealing it wrote to companies last week reminding them not to use the partial restoration of the tax to boost profits.

The watchdog said retailers must be transparent with customers and able to justify any claims made about price movements.

ACCC Commissioner Anna Brakey has issued a strong warning:

“We will closely examine fuel price movements and market behaviour, both in the lead-up to and following the increase in fuel excise,” she said.

“We will not hesitate to take action if retailers make false or misleading statements about price movements or if there is evidence of anti-competitive behaviour.”

While prices are expected to rise in line with the higher excise, the ACCC noted the increase may not be immediate, as retailers do not always face higher wholesale costs straight away due to delays in new fuel supplies reaching service stations.

It also stressed that global refined fuel prices continue to play a major role in what motorists ultimately pay at the pump.

“We encourage consumers to use fuel price apps and websites to compare prices at different retail sites before filling up to save money,” Ms Brakey said.

The ACCC’s latest data shows petrol prices in capital cities have already fallen below pre-conflict levels, while diesel prices have dropped to near pre-conflict levels.

Treasurer Jim Chalmers said the warning from the ACCC was aimed at ensuring motorists continue to benefit from the remaining tax relief.

“It’s been really terrific to see petrol and diesel prices come down very substantially in recent months,” he said.

“In fact, this week we think for the first time both petrol and diesel are cheaper than they were before the war in the Middle East began, but people are still under pressure.

“That’s why we’re extending this fuel price relief for another month at a tapered rate to provide the cost-of-living help that people need and deserve.”