The Australian government's 16-cent per litre fuel excise discount is scheduled to end on Sunday, 3 August. This temporary reduction, which was halved from 32 cents in July, will see the excise return to its normal level, adding 16 cents per litre to wholesale fuel prices.
Energy Minister Chris Bowen stated on Saturday that the government would not extend the cost-of-living relief. He told reporters, "Obviously we always monitor the situation and take steps as necessary, but our policy decision is clear."
Petrol prices could surpass $2 a litre and diesel $2.40 in the coming days. According to MotorMouth data on Saturday, unleaded petrol prices had already reached 205.6 cents per litre in Canberra, 204.4 in Darwin, and 200.5 in Hobart. Diesel prices in Melbourne were 242.7 cents per litre, with Canberra at 244.4 cents and Darwin at 244.1 cents.
A 16-cent increase in fuel prices could add $8.80 to the cost of filling a 55-litre vehicle tank. Economists, including Shane Oliver of AMP, have suggested the loss of the discount could push petrol prices up to 210 cents a litre, potentially increasing the average household's weekly fuel bill by around $20 and impacting headline inflation.