Sunshine Coast motorists can expect a bounce in fuel prices after the six-month fuel excise relief, initiated earlier this year, came to an end overnight.
But, thankfully, there may still be time to fill your tank at lower prices, as the higher rate of excise should only apply to new fuel deliveries.
The Government introduced the temporary cut in fuel excise in March, to assist Australians with the rising cost of living.
The Australian Competition and Consumer Commission noted the end of the relief measure would see excise increase to 46 cents per litre.
“Taking into consideration the associated increase in the GST, the impact on petrol and diesel prices will be additional taxes of 25.3 cents per litre,” the ACCC said on its website.
The RACQ reports that, on the Sunshine Coast, the average price of unleaded has been 189cpl and the average price of diesel is 203.4cpl.
It’s also hoped global factors may provide some relief to local prices.
RACQ spokesperson Nicky Haydon said a recent drop in global oil prices and large retail margins could potentially buffer the excise increase for the Sunshine Coast and the rest of South-East Queensland.
“Fuel companies have already purchased the stock they have in the ground at the discounted excise, so they need to use that fuel first before purchasing new stock at the higher price,” Ms Haydon said.
“Global oil prices have also fallen significantly from where they were in June and they are continuing to fall, so that should lead to lower wholesale prices in the next week.
“South-East Queensland is currently in the expensive phase of the fuel price cycle and retail margins are very high, so we believe fuel companies can absorb the full excise reintroduction and prices should remain fairly steady.”
Ms Haydon said if this occurs, motorists should not see prices above $2 until the fuel cycle enters its next hiking phase, which could be a week or two away.
“In the next peak in October, we would expect prices to sit between $2 to $2.05 and fall to around $1.80 in the cheap phase.”
Ms Haydon said the price of diesel may rise significantly because it does not follow a price cycle. However, like ULP, diesel margins are elevated compared to recent months and fuel companies can absorb most of the excise reintroduction.
“We expect to see a noticeable jump in diesel prices after the full fuel excise is returned, with average prices set to climb to around $2.15 per litre.
“If you need to purchase diesel, fill up now and aim for a target price of $2.04.”
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