Fuel prices twitching back up as end of excise relief nears

Only 26 days remain until the 22.1-cent fuel excise cut is removed and motorists around the country jump back to filling up at over $2.00 per litre – and already the prices are twitching.

The cut was implemented on 30 March 2022 to offset rising prices driven by the conflict in Ukraine. While the previous Federal Government set the relief before the election, the date the excise cut was planned to end, 28 September 2022, has not changed.

Since early July, average pump prices have been trending consistently downward, from a peak national average of $2.24 per litre of 95RON unleaded on 4 July 2022, to $1.90 per litre on 21 August 2022. That's a reduction of 15 per cent.

However, this week has marked the first time prices have risen for more than two days in a row, with the average national price of 95RON stepping up marginally to $1.92 per litre. This is against global oil prices that lifted slightly in recent weeks, from a six-month low of $US86.53 per barrel to $US97.01 earlier this week. An increase of 12 per cent.

Diesel prices in both Sydney and Melbourne are seeing a rise too. Just one week ago, the average pump price for diesel in Sydney was four per cent lower than that of 95RON unleaded ($1.95 to $2.04 per litre) whereas today it is eight per cent above ($2.06 to $1.90 per litre).

With less than four weeks before a considered jump in prices of all fuels, we'll be watching both oil and pump prices to understand the movement and impact on motorists in more detail.