Fuel and crude oil prices fall to lowest point in six months, excise cut to end this week


Fuel prices are set to rise with the Federal Government’s excise cut no longer in place from Thursday – but falling crude oil prices suggest relief is on the way.


The Australian average price of petrol is at its cheapest point in more than six months, but the end of the Federal Government’s fuel excise cut means costs at the bowser could soon skyrocket.

Last week, the national capital city average price for 95RON premium unleaded dipped to $1.86 per litre – equal to the six-month low recorded on April 29 – before nudging back up to $1.88 at the start of this week.

While Brisbane ($1.84/litre) and Melbourne ($1.81/litre) are both recording their lowest average fuel prices since Drive started tracking daily prices on 1 March 2022, Sydney prices have increased by five cents in a fortnight.



However, prices are expected to rise to more than $2 per litre within the next week, after the Federal Government’s 22.1-cent fuel excise cut ends on September 28 at 11:59pm.

With the 22.1 cent fuel excise increase applied to current prices, Australian motorists can expect to pay an average of $2.10 per litre for 95RON unleaded.

Despite petrol pump prices dropping by less than 15 per cent since the fuel excise cut was implemented on March 30, crude oil prices have decreased by more than 20 per cent across the same period, falling from $US102.94 per barrel to $US78.69.



Since August 29, the cost of 95RON has decreased by 0.4 cents per litre (or 17 per cent) – while crude oil prices have fallen by $US18.34 (or 19 per cent) in less than a month.

If the price of crude oil continues to decrease at its current rate, the cost of fuel may return to current levels within a few weeks.

Earlier this month, the Federal Government asked the Australian Competition and Consumer Commission (ACCC) to increase its monitoring of fuel prices, to ensure retailers are passing the savings on to customers for the full duration of the excise cut.



In the ACCC’s June quarterly report, the consumer watchdog found the annual average price of petrol was the highest since 2008 despite the fuel excise cut and decreasing crude oil prices. 

“We will shortly be engaging with fuel wholesalers and retailers to say that we do not expect to see uncharacteristic or abnormal wholesale and retail price increases in the days leading up to, and on the day of, or after, the reintroduction of the full rate of fuel excise,” ACCC Chair Gina Cass-Gottlieb said in a media statement last month.

“Motorists are reminded that prices will continue to fluctuate with changes in international prices and the exchange rate, as well as petrol price cycles in the five major capital cities.



“Our monitoring and analysis will assess and report on all factors influencing retail prices. The ACCC will continue its weekly reporting to consumers about what is happening to fuel prices and when to find the cheapest fuel.”

Jordan Mulach

Jordan Mulach is Canberra/Ngunnawal born, currently residing in Brisbane/Turrbal. Joining the Drive team in 2022, Jordan has previously worked for Auto Action, MotorsportM8, The Supercars Collective and TouringCarTimes, WhichCar, Wheels, Motor and Street Machine. Jordan is a self-described iRacing addict and can be found on weekends either behind the wheel of his Octavia RS or swearing at his ZH Fairlane.

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