Australian government ends fuel excise relief
- Fuel prices in Australia will increase as the temporary excise discount ends.
- A 16-cent-per-litre increase will take effect at the wholesale level.
- The government hopes for a resolution to the Middle East conflict to ease global pressures.
The Australian government has ended the temporary fuel excise discount, confirming wholesale fuel prices will increase by 16 cents per litre.
This move follows the halving of the original 32-cent discount in July, which was introduced to mitigate the impact of the US-Iran conflict on oil supplies.
"Obviously when it was taken off, the excise, it had a good impact on inflation, and that will equalise as it returns to a normal situation," said Australian Government Health Minister Mark Butler.
The increase is expected to add $8.80 to the cost of filling a 55-litre vehicle, and service stations usually take four days to pass on the adjustment.
The excise relief was initially implemented as a cost-of-living measure when global oil prices surged following the closure of the Strait of Hormuz.
The government stated that returning to a normal excise level is necessary while also calling for a resolution to the ongoing conflict to stabilise international fuel markets.
