Australian motorists are in for more pain when the Federal Government raises its fuel excise in line with CPI on Monday 5 February 2024, something it does twice a year.
Currently set at 48.8 cents per litre, the new excise for petrol and diesel will increase to 49.6 cents per litre. Fuel retailers will need to pass on this cost to consumers.
The unfortunate result will be higher prices at the fuel bowser.
“This is an indiscriminate tax that affects low income earners the most. Considering the Federal Government’s recent tax cut announcement, savings gained from the cut will end up funding higher fuel excise at the pump,” VACC CEO Geoff Gwilym said.
Further, fuel excise is a tax on a tax, which compounds motorists’ pain. “It’s a clear double dip by the Federal Government, as it also applies GST. It’s no wonder Australia has sky high
fuel prices.”
Angry consumers regularly question fuel retailers about ever-increasing fuel prices, or worse, accuse them of price gauging, but it’s the big oil companies that set fuel prices and then the Federal Government adds its crippling fuel excise (49.6 per cent) plus GST (10 per cent).
“Motorists need correct information on how retailers price their fuel. They need to understand fuel excise is not a stagnant tax, but that the government increases it every six months.
Last financial year (2021-22) fuel excise added $18.2 billion to the Federal Government’s coffers (3.2 per cent of total 2021-22 budget revenue).