Australian motorists are being warned to prepare for higher fuel costs, with new analysis suggesting households could face hundreds of dollars in additional annual expenses as fuel excise relief is gradually wound back.
Research from financial comparison website Savvy estimates the end of the full fuel excise discount could add about $74 per month to the budget of an average two-car household, equivalent to around $883 per year.
The Federal Government introduced temporary fuel excise relief in April in response to soaring fuel prices linked to conflict in the Middle East. The measure reduced the fuel excise payable on petrol and diesel, cutting prices at the bowser by about 32 cents per litre.
Savvy warned that if the full discount were removed, households driving two vehicles a combined 27,600 kilometres annually could see fuel bills rise by almost $17 per week. The analysis also suggested further increases in global oil prices could push those costs even higher.
Savvy Managing Director Bill Tsouvalas said the return of higher fuel taxes would place additional pressure on families already dealing with cost-of-living challenges.
“$17 per week may not sound like a lot, but every dollar counts when we’re talking about household budgets that are already at breaking point,” Tsouvalas said.
However, the Federal Government has since announced a one-month extension of fuel excise relief. From 1 July to 2 August, motorists will continue to receive a discounted rate, although the benefit will be reduced from 32 cents per litre to 16 cents per litre. The Government estimates this will save motorists about $11 on a typical 65-litre tank of fuel.
Prime Minister Anthony Albanese said the extension would help ease ongoing cost-of-living pressures while global fuel markets remain volatile.
The impact is expected to be particularly significant for transport operators. Savvy estimates a heavy-duty truck travelling 200,000 kilometres annually could face additional fuel costs of more than $28,000 per year if diesel prices increase by the full 32 cents per litre.
Industry observers note that while the temporary extension provides some relief, fuel prices will continue to be influenced by global oil markets and geopolitical events.
For households and businesses alike, the coming months may provide a clearer indication of how fuel costs will affect budgets once government support measures are fully phased out.