Connect with us


Fuel excise cuts saw prices initially drop across major cities



The federal government's excise cut on record high petrol prices in late March benefitted the pockets of Australian motorists.

In a bid to reduce cost of living pressures, the federal government announced they would half the fuel excise rate from 44.2 cents to 22.1 cents for six months – until September 28.

According to the Australian Competition and Consumer Commission (ACCC), daily average petrol prices fell by at least 39 cents per litre in major cities like Sydney, Melbourne and Brisbane.

"We can see from our petrol market monitoring that the cut to the fuel excise has been passed on to Australian motorists in the vast majority of locations," ACCC Chair Gina Cass-Gottlieb said.

READ MORE: Investors hoping for Australian sharemarket rebound after horror day

Daily average petrol prices across the nation's five largest cities shrunk by around 42 cents per litre between March 29 and April 19.

But by mid-April, wholesale and retail petrol prices were back to rising amid Russia's war in Ukraine.

"Our domestic retail petrol prices largely follow the international benchmark price because most of the fuel we use in Australia is imported," Cass-Gottlieb said.

"Retail petrol prices will still fluctuate with changes in international prices and the price cycles in the largest capital cities, even though the excise cut has flowed through to the bowser."

Before the federal budget in March, the average daily petrol price was at a 14-year high of 214.9 cents per litre.

March 2022 was the fifth consecutive quarter in which petrol prices increased, rising 19.1 per cent on last year's December quarter.

READ MORE: Federal politicians get a pay rise as workers await minimum wage decision

Seven-day rolling average retail petrol prices in nominal terms in the five largest cities: 1 January 2020 to 31 March 2022

According to the consumer watchdog's latest report, between the December quarter 2020 and the March quarter 2022, average retail prices increased by about 50 per cent.

The ACCC said: "Prices in the March quarter 2022 were some of the highest in the past 20 years, and the highest since July 2008."

The federal government expects their fuel excise reduction will cost about $3 billion in lost revenue.

Source link

Copyright © 2021 All Right Reserved.