Australian motorists have suffered pains in the bowser this year, with petrol prices exceeding $ 2 a liter.
This is despite the previous federal government’s move in March to half of the fuel tax in an attempt to reduce financial pressure on drivers.
But that cut was not forever and the reduced rate will expire soon.
So what does this mean for drivers when they suffer the full excise tax again in about three months?
What is the excise tax on fuel?
Every time Australians buy petrol, they contribute to a set of funds that the federal government uses for roads and infrastructure.
Simply put, you usually pay a tax of 44.2 cents for every liter of fuel you buy, included in the bowser price.
The excise tax was halved on March 30 to 22.1 cents a liter.
Why did the Morrison government reduce the fuel tax?
The measure was aimed at counteracting rising petrol prices to alleviate pressures on the cost of living.
The government estimated that the fuel tax cut would save the owner of a mid-size car about $ 13 by filling it, while companies with fleet vehicles were expected to save thousands.
Then-Treasurer Josh Frydenberg said the competition control body would oversee retailers to make sure savings were fully transferred.
“This temporary reduction in excise tax will have no cost to road funding, which will mean spending more than $ 12 billion next year,” he said.
Former Treasurer Josh Frydenberg had expected the cost of oil to drop in September, when a reduction in excise duty would expire. (AAP: Joel Carrett)
How long did the cut start?
The excise tax on gasoline, diesel and all other fuels and petroleum products, except aviation, was halved for 6 months from 12.01 on 30 March.
The cut has provided some relief for about three months so far and should return to the total rate of 44.2 cents per liter on September 28th.
That was when Mr. Frydenberg expected the price of a barrel of oil to return to about $ 100 ($ 147), below $ 115 to $ 120 when the cut was introduced.
When will the full tax return?
Unfortunately, drivers can expect to see a jump in gasoline prices starting Sept. 29.
Labor backed the Morrison government’s halving of the fuel tax.
But before the election, both sides insisted it was only a six-month measure and that the full tax would be re-applied to prices in September.
Prime Minister Anthony Albanese reiterated that message to reporters this week, saying the two sides had no plans to extend the cut further in the future.
“And these are the circumstances we have to deal with. We can’t do everything we would like,” Albanese said.
“Because in the long run, if we don’t do something to improve the fiscal position of the budget, then the impact on households will continue down the road.
“So we have difficult decisions to make.”
Prime Minister Anthony Albanese says there are no plans to extend the excise tax cut in the future. (AP: Mark Baker)
What have gasoline prices been doing since the excise tax was reduced?
You’ll probably still feel the bite in the bowser with gasoline prices still high.
The latest data from the Australian Petroleum Institute show that Australian drivers paid an average of $ 2.11 per liter last week.
If prices stay that way, we could be paying more than $ 2.30 per liter to fill up when we’re stuck with the excise tax in September.
The price of oil, however, has fallen this week, to $ 100 a barrel.
They are a major factor in international benchmark prices for refined gasoline and diesel, so if retailers start to reflect the cost reduction at the pump, drivers could see some relief before the excise tax is reinstated. .