Why Australians still aren’t seeing cheaper petrol after Government halved the fuel excise

When the Federal Government halved the fuel excise last week, promising a reduction of 26.3 cents a litre, motorists expected to see some relief at the bowser.

But, despite the tax cut kicking in on April 1, those discounts have yet to eventuate for many drivers.

State and Territory leaders tipped in an extra 5.7 per cent discount on the Federal Government’s three-month commitment, resulting in an expected discount of about 32 cents per litre.

Yet a snapshot of a handful of bowser prices tracked across Perth by The West Australian suggests the savings remain painfully inconsistent.

RAC Manager Vehicles and Fuels Alex Forrest has shed light on the delay in discounts.

Mr Forrest said many petrol stations still have to sell the fuel they purchased at the previous price before they can offer the reduced prices.

“Fuel excise is charged at the wholesale level before fuel reaches service stations” he said.

“Any fuel sitting in tanks that was purchased before the excise cut needs to be sold before lower taxed fuel shows up at the bowser.”

This means that busier metro sites can move through stock quickly and adjust prices sooner, while rural or lower volume retailers may take longer.

FuelWatch price trends indicate prices have been dropping since the excise was introduced.

On March 31, unleaded petrol cost an average of $2.517 a litre, and just a week later, on April 7, it cost $2.198 a litre at the bowser

Mr Forrest said motorists are correct to expect clear discounts at the pump.

“If that’s not happening, then questions need to be asked of the fuel retailers,” he said.

“The spotlight is them (the retailers) to ensure motorists have confidence that savings are being passed on in full”

At least 21 retailers have been fined since the war in Iran started, triggering fuel price hikes globally.

Consumer Protection WA Commissioner Trish Blake said it was keeping a close eye on fuel prices in WA.

“Prices have gone up like a rocket — they are not to come down like a feather,” Ms Blake said.

“We expect the same pace coming down … and if it’s not matching, we will be calling it out.”

Today’s average fuel price for unleaded petrol is $2.27 per litre, with the average diesel price sitting at $3.18 per litre.