No escape: Petrol, diesel, and electricity prices to soar

Australian motorists are to be slugged with higher vehicle running costs in the coming months.

The reduced fuel excise tax introduced just prior to the federal election looks unlikely to be continued by the newly-elected government when the discounted tax expires in late September.

The tax was halved to 22 cents per litre in March in an effort to douse rapidly rising petrol and diesel prices and reduce inflationary pressures on households.

At the time, the national average price of unleaded dropped from a high of $2.13 per litre down to $1.66c/L in mid April, according to the Australian Institute of Petroleum, before continuing to go up again – in step with rising global crude oil prices.

Electric vehicle (EV) owners could be in for their own shock, after the Australian Energy Regulator announced last week it was raising price caps, opening the door for power companies to increase costs to customers.

But while many EV owners charge their cars using home solar set-ups, the change could see charging stations up prices for those who need to recharge when away from home.

Industry data shows EV sales are up 200 per cent compared with the time last year, with anecdotal evidence suggesting many drivers are making the switch, in part, to avoid increasing petrol prices.

A research note released by CommSec Chief Economist Craig James earlier this month predicted bowser prices were “set to return to record levels”.

Between 1 May and 22 May, the average national price of unleaded increased by almost 12 per cent.

While households close to major cities are more able to take advantage of bicycle tracks and public transport networks, Australians in regional areas have fewer alternative options to driving and are expected to take the brunt of the rising cost-of-living pressures.