Motorists warned to brace for soaring petrol prices

The cost of fuel looks set to increase in the coming weeks, thanks to the double-whammy of increasing crude oil prices and the end of the discounted fuel excise tax.

Despite a sharp rise in the price of petrol and diesel in some parts of the country in recent days, motorists are being warned to brace for even higher pump prices, with the international crude oil market indicating more expensive fuel is on the way soon.

A week after Brent crude oil futures hit a six-month low – falling to $US93 per barrel – prices are now sitting at $US100 per barrel following rumours of a production cut from the international peak body OPEC.

These market trends mean petrol and diesel could again push above $2.00 per litre as a national average, just in time for Australians to be hit with another price shock.

The Federal Government’s fuel excise tax – which was halved to 22.1 cents per litre for a period of six months to help ease cost-of-living pressures – is also set to revert back to 44.2 cents per litre on 28 September.

Earlier this month, the Australian Automobile Association (AAA) found the average weekly household fuel budget had risen above $100.

“Despite the temporary excise cut, fuel prices are rising and continue to be a significant contributor to cost of living pressures across both regional and metropolitan Australia,” AAA Managing Director Michael Bradley said at the report's release.

“This is the first time the national weekly average spent on fuel has passed $100 since the index’s inception in 2016.”

With the Federal Government vowing to discontinue the fuel excise discount, unleaded could jump to more than $2.00 per litre, while diesel is likely to exceed $2.20 per litre.