With crude oil prices rising and the end of the excise fuel tax rebate in sight, Australian households could face large fuel bills.
The cost of fuel seems destined to increase in the coming weeks, thanks to the double whammy of rising crude oil prices and the end of the excise tax on discounted fuel.
Despite a sharp increase in the price of gasoline and diesel in some parts of the country in recent days, motorists are warned to prepare for even higher prices, and the international crude oil market indicates that there will soon be more expensive fuel.
A week after Brent crude oil futures hit a six-month low, falling to $93 a barrel, prices are now hovering around $100 a barrel on rumors of a production cut by international body OPEC.
These market trends mean that petrol and diesel could rise back above the $2.00 per liter national average, just in time for Australians to take another price hit.
The federal government’s excise tax on fuel, which was cut in half to 22.1 cents per liter over a six-month period to help ease cost-of-living pressures, will also return to 44.2 cents per liter on September 28.
Earlier this month, the Australian Automobile Association (AAA) found that the average weekly household fuel budget had risen above $100.
“Despite the temporary reduction in excise duties, fuel prices are rising and continue to contribute significantly to cost of living pressures in regional and metropolitan Australia,” AAA CEO Michael Bradley said in the publication of the report. report.
“This is the first time the weekly national average spent on fuel has exceeded $100 since the index’s inception in 2016.”
With the federal government promising to discontinue the fuel excise tax rebate, unleaded gasoline could rise to more than $2.00 a liter, while diesel is likely to exceed $2.20 a liter.