Motorists may have to wait for a price drop at the pump as the Morrison government prepares to cut the gasoline excise by up to 20 cents.
The 44c/L gasoline excise will be halved from midnight on budget night, with Treasurer Josh Frydenberg hoping to help households cope with growing living costs.
The adjustments will take effect from Tuesday night, according to News.com.au, and petrol outlets will be urged to pass the savings on to customers as soon as possible.
However, Mark McKenzie, a spokesman for Australasian Convenience Petroleum Marketers, said the cut might take “a few days” to reach drivers since petrol stations may need to “remove the volume that’s in the ground” first.
“Some service stations will get delivery every day, while others may get deliveries every two or three days,” Mr McKenzie told 3AW.
“Obviously, we have no control over the global oil market,” he continued, “so we don’t know whether that sort of dynamic will continue to force prices up.”
While there may be some minor delays, NRMA spokesperson Peter Khoury told news.com.au that the savings should be available within a week.
“I believe it happened almost instantly in the UK,” he remarked.
Mr. Khoury stated that the government’s decision to reduce excise taxes has two major flaws.
“First and foremost, if oil prices rise again, the 20 cents will surely be eaten up,” he warned.
“The profit margin is the second.
So that’s something the government will have to keep a tight eye on once it’s implemented.”