Qld fuel prices continue to rise as excise cut finishes

Motorists have taken a hit to the hip pocket ahead of the government’s cut to the fuel excise on Wednesday – and it will only get worse, with prices tipped to soon reach $2.10 a litre.

More pain is on the way for Queensland motorists as experts predict the price of fuel could skyrocket to as much as $2.10 a litre in coming months.

It comes as the federal Labor government winds back the former Liberal government’s cut to the fuel excise on Wednesday night.

Brisbane petrol prices have already jumped from $1.57 to $1.93 over the past fortnight in anticipation of the change, spiking 17c in the past week alone.

The fuel excise is a 46c-a-litre sales tax levied by the federal government on all petrol and diesel sold at the pump, delivering big dollars to Canberra’s coffers.

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.

Queensland fuel prices could reach as high as $2.10 a litre in the next six months, the RACQ predicts. Picture: NCA NewsWire/Flavio Brancaleone

The Morrison government cut the excise by 22c in the March budget to help ease cost-of-living pressures.

Federal Treasurer Jim Chalmers said last week the removal of the fuel excise discount was one of many difficult decisions the government was making in the 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,” Dr Chalmers said.

Compare the Market’s Chris Ford said 495 of the 544 petrol stations the company monitored across Queensland were already over $1.90 a litre.

But Dr Ian Jeffreys, RACQ’s economic and affordability specialist, predicted the price of petrol would not continue to change dramatically in coming days following the recent 36c increase.

“A peak will occur in the next day and then the usual petrol cycle will continue,” he said.

However, he said fuel prices could reach as high as $2.10 a litre in the next six months.

Mr Ford said major brands had been splitting their prices knowing Queenslanders’ eyes are currently on them.

Brisbane petrol prices have already jumped from $1.57 to $1.93 over the past fortnight. Picture: NCA NewsWire/John Gass

“Some stations are at $1.95; others from the same brand just a suburb over are $1.50, and independents are staying competitive and staying cheaper,” he said.

Dr Jeffreys said the Southside of Brisbane suburbs such as Coopers Plains, Acacia Ridge, Logan, and Sunnybank does tended to be cheaper than the Northside.

The most expensive suburbs for petrol are Milton, West End, Newstead, Hamilton, Ascot and up and down the Bruce Highway and M1 highway, and anywhere near the main arterial.

Mr Ford said the best way Queenslanders could manage rising rates was to use comparison apps and fill up at the cheaper stations, with the best prices ranging between $1.50 to $1.70.

Currently, the national average price for petrol is about $1.63 a litre, which is about 50c less than the high of $2.12 in late March when the excise cut was announced.

While prices are expected to bounce when the excise returns, the government believes it should not shoot up overnight because fuel has been bought at lower prices in advance by petrol stations.

Treasurer Jim Chalmers said the federal government was “under no illusions” that the fuel price rise “will be difficult for people”. Picture: NCA NewsWire/Gary Ramage

There is no guarantee, though, 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.

Sarah Megginson, money expert at comparison website Finder, said the fluctuating fuel prices were going to put a lot of financial strain on the lives of Australians.

She said it was only set to get worse, but she had some tips for how to soften the blow of high petrol prices.

She said choosing the right day to fill up could help motorists save big.

“Tuesdays mornings are often cheapest,” she said.

“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 58 litres of fuel, a difference of $25.52.”

Ms Megginson also suggested signing up for a rewards program that gave you airline points or cashback.