When the fuel tax returns to its usual rate in September, Australians will see a 22-cent-per-liter hike in their petrol bills.
In the March 29 Budget, the previous Coalition government cut the 44-cent-per-liter charge in half as a temporary measure to combat rising living costs.
The temporary fuel tax concession will expire on September 28, and the incoming Labor administration has said that extending it would be “extremely tough” despite rising inflation.
With the debt approaching $1 trillion, the six-month fuel duty cut resulted in a net loss to the Budget of $2.9 billion, which new Treasurer Jim Chalmers believes is too high to repeat.
The Coalition and Labor parties have stated that the cut will not be extended during the election campaign.
On Monday, sources close to Dr. Chalmers told the Daily Mail Australia: ‘Jim’s position has remained the same.’
As a result, motorists will almost certainly face a 22-cent-per-liter increase in September.
A family with two cars that fills up once a week will pay about $30 more per week or $700 more over six months.
Dr. Chalmers said in interviews last week that the fuel duty cut is ‘highly unlikely to be extended.
‘If there’s anything else we can do responsibly, we will, but people shouldn’t expect the cost-of-living relief announced in the Budget earlier this year to last indefinitely,’ he said.
‘That was something we said before the election.’ We were open and honest about it. That is still our stance.’ Other cost-of-living measures may be included in Dr. Chalmers’ October Budget, but the fuel cut will likely end as planned.
According to the NRMA weekly fuel report released on Monday afternoon, the highest Sydney prices for E10, Premium 95, and Premium 98 were 206.4, 224.5, and 230.1 cents per liter.
E10 was 199.9 cents a liter on a seven-day average.
Other cost-of-living measures may be included in Dr. Chalmers’ October Budget, but the fuel cut will likely end as planned.
According to the NRMA weekly fuel report released on Monday afternoon, the highest Sydney prices for E10, Premium 95, and Premium 98 were 206.4, 224.5, and 230.1 cents per liter.
E10 was 199.9 cents a liter on a seven-day average.
‘On the run, the former Coalition government made a disastrous and ill-advised decision to abolish the fuel tax credit payable to truck operators to fund 80% of the fuel excise cut,’ according to the association’s chief executive Steve Shearer.
‘This meant that the taxpayer only paid 4.3 cents per liter of the 22.1 cents per liter fuel tax cut, while the trucking industry paid the remaining 17.8 cents per liter in a sleight-of-hand move.’
‘Truck operators claim the tax credit every quarter, with amounts ranging from $2,000 to over $150,000, and no business can afford to lose such a large sum.’
Because of the change in fuel tax credits, Mr. Shearer said the supply chain was on the verge of collapsing.
The government claimed that the credit was unnecessary because truck drivers would benefit from the 22-cent-per-liter reduction in fuel excise.
On the other hand, Truckers claim that the cut isn’t beneficial to them because they buy their fuel wholesale in advance.
It comes as Australians struggle to keep up with rising living costs.
In a Brisbane supermarket, a head of lettuce was found for $11.99, while a bag of Red Rock Deli chips was found for $5.90 on the shelves of a Sydney Woolworths.
Consumer organizations The prices of common items in February 2021 and February 2022 were recently compared by One Big Switch and Frugl Grocery, with the results revealing a significant difference.
Soft drinks, instant coffee, baked beans, canned fruit, and minced meat all have double-digit annual price increases, outpacing inflation in many cases.
The most significant price increase was for two-liter bottles of orange Fanta sold at Coles, with prices nearly doubling from $2.35 to $4.55. The drink is now $3.15 in Coles’ online store.
Nescafe and Moccona instant coffee prices have risen by 50 to 74 percent.
According to the data, food staple prices increased, with diced beef prices rising 22% and basic beef mince prices rising 14%.
Cooking oil costs jumped by 19%, while baked beans and canned spaghetti prices soared by 21%.
The cost of branded canned fruit increased by 17%.
Experts have encouraged Australians to cut out on ‘forgotten pleasures’ they won’t miss to cope with rising living costs.