Fuel excise rebate ends at midnight, prompting likely pump price rise

At 00:00 tonight the government-backed fuel excise cut, introduced in April to offset the oil shock from the Strait of Hormuz closure, will end and the tax will be re-indexed to about 53.7 cents per litre. The rebate, which reduced the excise to 36.6 cents, had cut wholesale fuel costs by roughly 16 cents per litre. Treasury Minister Jim Chalmers confirmed the policy was always temporary, while RACQ spokesperson Ian Jeffreys noted any price rise may take up to ten days to filter through to consumers.

Economists such as Scott French argue the cut distorted price signals and cost taxpayers billions. Energy researchers point to a stable supply chain, with national reserves covering over a month of petrol and diesel, but warn diesel prices could stay high, affecting freight and grocery costs. Consumers are urged to compare prices using state fuel-price apps and websites.