Tue. Aug 16th, 2022

Motorists should plan for an increase in petrol prices from September, when the temporary cut to the fuel excise ends, Treasurer Jim Chalmers says.

The fuel excise charged on each liter of fuel sold in Australia was cut by 22.1 cents per liter in the March budget.

Both sides of politics said the temporary six-month measure was necessary. It was hoped that fuel prices would be cheaper once it ended.

Mr Chalmers said it would be “incredibly hard” to continue fuel tax relief indefinitely amid growing government debt and economic challenges like high inflation and falling real wages.

He had been asked if it was still due to end in September.

“The short answer is yes, most probably,” Mr Chalmers told a Guardian Australia podcast.

“[People] should assume that the petrol price relief comes off in September.

“Obviously, we factor in the conditions as they evolve, and the budget and all of the rest of it.

Chalmers looks serious as he looks down, speaking from inside the 'Blue Room'.
The move by the previous government was designed to help take the sting out of high petrol prices.(ABC News: Matt Roberts)

The previous government announced a six-month cut to fuel excise in the March budget. The fuel excise had been 44.2 cents per liter.

The move was designed to help take the sting out of high petrol prices driven by global oil constraints.

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