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Government To End Temporary Fuel Excise Discount On 2 August

Weaker global oil buffers raise the risk of higher pump prices and have prompted the government to strengthen domestic fuel security.

Overview

  • Treasurer Jim Chalmers confirmed late Wednesday that the temporary fuel excise discount will end at midnight on Sunday 2 August, finalising the taper the government began in July.
  • The relief was introduced in April to blunt Middle East-driven price shocks and was reduced from an initial about 32 cents per litre to 16 cents this month before being withdrawn.
  • Drivers should expect petrol prices to rise by a few cents per litre from Monday, with the exact increase varying by service station and timing of existing fuel stocks.
  • A Treasury briefing warned global oil supply buffers are thinner after Red Sea shipping disruptions and refinery attacks, making upside price risk more likely in the near term.
  • The government says Australia holds roughly 42 days of fuel and is moving to bolster resilience with an Australia Fuel Security Reserve target, plus $4 million for a refinery pre-feasibility study.