“Fill up in the regions” – RAA message to motorists ahead of long weekend

The fuel excise reduction has ended and while prices are yet to skyrocket, motorists should hold off and fill up on the road, the RAA says.

Adelaide motorists heading away for the long weekend are being advised to hold off on making the trip to the servo and to instead fill up in the regions.

While the petrol excise reduction is yet to be reflected at the pump, service stations in South Australia’s regions are expected to hold on to the cheaper fuel for the next week.

RAA fuel expert Mark Borlace said the lower demand will extend the supply.

“They won’t have to raise their prices until they send a tank into town to buy the new fuel with the extra tax on it,” he said.

“The regions also don’t have a price cycle, because they don’t have the competition the city does.”

However, there is no guarantee as the price of fuel is set by the market and the government or Australian Competition and Consumer Commission have little control over the average price of petrol or diesel.

Mr Borlace previously said the effect of the fuel excise was inevitable and he advised motorists to make the most of the coming weeks before the extra 22 cents “flows through to the pump”.

The petrol excise reduction ended at midnight on Wednesday.

The Australian Competition and Consumer Commission (ACCC) reported the changes will see a price rise of about 25c a litre.

Motorists should expect the standard low price of petrol to be $1.75 per litre, while a high standard price will sit at $2 per litre.

RAA’s fuel price monitoring app on Friday morning showed Costco at Kilburn with the lowest price on Unleaded 91 at 170.7c/L, followed by Silver’s Auto Centre in the city at 187.9c/L.

The majority of the other metropolitan and suburban outlets were already nudging the 190c/L price.

The ACCC said they would continue to monitor fuel prices.

NRMA spokesman Peter Khoury said there was no reason motorists were already paying more at the pump.

“To put it into context, oil prices have dropped $60 a barrel since June,” Mr Khoury said.

“The wholesale price in Australia has dropped 52 cents. It’s done nothing but go down.”

“There is absolutely no reason why these capital cities are in the 180s and 190s,” he said.

Mr Khoury said it was “incredibly disturbing for people out there struggling to pay basic bills.”

“These prices are way too high, they need to come down and they should have started coming down at the start of this week because we know that at some point in the next couple of weeks, prices are going to jump 25 cents a litre.”

BP petrol station Picture: NCA NewsWire / Gaye Gerard

The fuel excise is a 46 cent per litre sales tax levied by the federal government on all petrol and diesel sold at the pump.

And it delivers big dollars.

In the March budget it was estimated Australian motorists would pay more than $13.9bn this financial year and more than $62bn over four years.

The Morrison government cut it by 22 cents back in the March budget to help ease cost of living pressures.

Labor’s federal treasurer Jim Chalmers last week said the removal of the fuel excise discount was one of many difficult decisions the government was making in the coming October budget.

“We are under no illusions that this will be difficult for people, it’s a difficult decision for us to take as well, but we put a premium on responsible budget management,” said Dr Chalmers.

Sarah Megginson, money expert at comparison website Finder, said the fluctuating fuel prices are going to put a lot of financial strain on the lives of Australians and it’s only set to get worse, but she has some tips for how to soften the blow of high petrol prices.

“Many Australians are dreading filling up at the pump, and with the fuel excise set to end in a week, now is the time to grab cheaper fuel while it’s still available,” said Ms Megginson.

She recommends planning when to fill up and find the best price in your area if you can.

“Tuesdays mornings are often cheapest. I filled up my tank last Tuesday morning for 151.9c per litre, and by Tuesday evening it was 195.9c per litre. I bought 58L of fuel, a difference of $25.52,” she said.

Lastly, Megginson suggests that if you have to pay for fuel try to make the most of it and sign up for a rewards program that gives you airline points or cashback.