27 September 2023

Petrol prices plunged when fuel excise cut

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In the weeks after the fuel excise was cut on 30 March of this year, daily average petrol prices fell by at least 39 cents per litre (cpl) in five of the country’s capital cities, according to the Australian Competition and Consumer Commission’s (ACCC) latest petrol monitoring report.

Chair of the ACCC, Gina Cass-Gottlieb said the 39 cpl price drop affected Sydney, Melbourne, Brisbane, Perth and Adelaide, while in Canberra, Hobart and Darwin prices fell by between 25 and 48 cpl over the same time period.

“The fuel excise cut plus the associated decrease in GST totalled 24.3 cpl but temporary falls in international refined petrol prices in early April, as well as simultaneous price cycle declines in most of the five largest cities, boosted the savings to many motorists,” Ms Cass-Gottlieb said.

“Daily average petrol prices calculated across the five largest cities decreased by around 42 cpl between 29 March and 19 April,” she said.

“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.”

Ms Cass-Gottlieb said retail petrol prices would 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.”

She said the ACCC’s monitoring would continue for the duration of the excise cuts.

“Petrol retailers who fail to maintain the cuts can expect to hear from us,” Ms Cass-Gottlieb said.

The ACCC’s 78-page Report on the Australian petroleum market: March quarter 2022 can be accessed at this PS News link.

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