Fuel excise returns in full: what it means for south east Qld
From midnight the Federal Government’s cut to fuel excise will end, adding 25.3 cents per litre (cpl) to the wholesale price of unleaded and diesel.
RACQ spokesperson Nicky Haydon said a recent drop in global oil prices and large retail margins could potentially buffer the excise increase for south east Queensland.
“We shouldn’t see prices hike dramatically overnight and there are several reasons behind that,” Ms Haydon said.
“Fuel companies have already purchased the stock they have in the ground at the discounted excise, so they need to use that fuel first before purchasing new stock at the higher price.
“Global oil prices have also fallen significantly from where they were in June and they are continuing to fall, so that should lead to lower wholesale prices in the next week.
“South east Queensland is currently in the expensive phase of the fuel price cycle and retail margins are very high, so we believe fuel companies can absorb the full excise reintroduction and prices should remain fairly steady.”
Ms Haydon said if this occurs, motorists should not see prices above $2 until the fuel cycle enters its next hiking phase, which could be a week or two away.
“In the next peak in October, we would expect prices to sit between $2-$2.05 and fall to around $1.80 in the cheap phase.”
Ms Haydon said the price of diesel may rise significantly because it does not follow a price cycle. However, like ULP, diesel margins are elevated compared to recent months and fuel companies can absorb most of the excise reintroduction.
“We expect to see a noticeable jump in diesel prices after the full fuel excise is returned, with average prices set to climb to around $2.15 per litre.
“If you need to purchase diesel, fill up now and aim for a target price of $2.04.”