Regional motorists have “weeks” left of cheaper petrol, says ACCC

The cut to the fuel excise comes to an end tomorrow but regional service stations will have “weeks” of cheaper fuel left in reserves before prices will jump.

Regional motorists are being told not to brace for a sharp jump in fuel prices next week when the discount to the fuel excise is scrapped.

Treasurer Jim Chalmers last week confirmed the federal government would stick to the former Coalition government’s sunset date of September 29 for ending of the reprieve on fuel prices.

“We’re 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,” Minister Chalmers said.

The ACCC has been closely monitoring pricing by the fuel industry and has warned it would take action if retailers made misleading statements. Picture: John Appleyard

The fuel industry has estimated there will be more than 700 million litres of lower excise fuel in storage tanks when the full fuel excise is reintroduced next week.

Minister Chalmers said the federal government had been working closely with service station owners and fuel suppliers to ensure prices didn’t shoot up until those reserves were drawn down.

This is expected to happen later in regional and rural Australia, where turnover is much lower and fuel is replenished less frequently.

The Australian Competition and Consumer Commission said the price hike would hit suburban petrol stations first, and then in the regions a few weeks later.

“Generally turnover in remote and regional locations is slower than in the capital cities and therefore we would expect that in many locations prices will take a number of weeks to adjust to the reintroduction of the fuel excise,” an ACCC spokesman said.

The ACCC has been monitoring 190 regional service stations nationwide to check the price reduction was being passed on to motorists.

Petrol prices jumped up across the nation last week ahead of the excise being reinstated in full.

The Australian Institute of Petroleum reports the national average petrol price rose 10.4c to 173.9c per litre, and 15.3c in Victoria to 175.6c per litre.

Diesel prices in regional Victoria however dipped 0.9 cents last week to 205.4c per litre.

Former Treasurer Josh Frydenberg in March introduced a six-month halving of the fuel excise on petrol and diesel bought at the bowser from 46c to 23c to provide cost of living relief.