Fuel Prices Soar in Australia Amid Expired Excise Cut and Ongoing Middle East Conflict

Australian motorists are facing significant jumps in fuel costs as the federal fuel excise expires and international oil prices rise due to ongoing Middle East conflict.

According to the Australian Competition and Consumer Commission's weekly fuel price monitoring report, capital city petrol prices averaged 193.6 cents per liter and diesel averaged 232.8 cents per liter as of July 29.

The temporary reduction in the federal fuel excise, which was 16 cents per liter, has expired, and from August 3, the excise rate will increase to 53.7 cents per liter, including an indexed adjustment of 1.1 cents per liter tied to changes in the Consumer Price Index.

The combined impact of these tax changes could add up to 17.6 cents per liter to pump prices, according to the ACCC's analysis. Wholesale fuel costs have also increased sharply, with average terminal gate prices for petrol rising by as much as 36.8 cents per liter and diesel climbing by as much as 63.8 cents per liter between June 30 and July 29.

National average pump prices reflect the scale of the recent increases, with a national average unleaded petrol price of 198.9 cents per liter on August 1, up 26.0 cents compared to the previous month.