Oil price surge to coincide with excise return, RACQ warns
Queensland motorists are being urged to fill up now to avoid higher prices with the end of the excise discount coinciding with elevated global oil prices.
The Federal Government's extended fuel excise relief ended today, increasing the excise charged on petrol and diesel from 36.6 cents per litre (cpl) to 53.7cpl.
RACQ Principal Economic and Affordability Specialist Dr Ian Jeffreys said motorists are facing two factors that are both pushing prices in the same direction – the return of the full excise and uncertainty in global oil markets.
“From today the full excise will be reinstated to wholesale prices and should take around one week to flow through to all bowsers,” Dr Jeffreys said.
“Unfortunately, we’ve also seen the global oil price jump from below $80US per barrel to around $90US in the past two weeks.
“If renewed tensions in the Middle East remain high, we could see these increased oil prices persist and ultimately push bowser prices up further in Queensland.”
The average price of regular unleaded in Greater Brisbane is currently around $1.92 per litre, while diesel is averaging $2.35 per litre.
Based on current retail margins, oil price trends and the reinstated excise, RACQ expects prices could rise to around $2.20 per litre for unleaded and up to $2.65 for diesel in the coming week.
“We’re encouraging motorists to fill up now to ensure they aren’t paying a premium,” Dr Jeffreys said.
"It normally takes around a week to 10 days for the higher excise to flow through to station prices, depending on when retailers purchase new fuel stock.
"That means there will still be cheaper fuel available in the market in the coming days and motorists should continue looking for the best value.
“Make sure you use Apps like RACQ’s Fuel and Deals to find the cheapest sites – typically the smaller independent service stations will keep their prices lower for longer.
“Be sure to only buy what you need – stockpiling fuel can be dangerous and may create unnecessary local supply issues."
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