Motorists warned to expect no relief as government refuses to cut fuel excise

Motorists are being warned sky-high fuel prices will remain over the coming months, as the Australian government rules out cutting the fuel excise again.

In a further blow to household finances, the price of Tapis – which supplies the Asian markets including Australia – rose a further $2 a barrel overnight on Monday to $US110 ($A154.21), continuing its recent march higher.

Gas Oil or diesel as it is commonly known, jumped $3 overnight to $US195 ($A273.39).

Motorists pay an additional 1 cent a litre at the petrol pump for every $1 increase in benchmark prices.

Since July motorists are now paying 37 per cent more for unleaded fuel while diesel drivers have been slugged 45 per cent more.

NRMA spokesman Peter Khoury said there was simply no good news coming out of the Middle East which was hurting Australian motorists.

“We’ve been seeing oil prices continuously going up. Unfortunately that doesn’t look like it is changing anytime soon, especially not in the short-term,” he said.

Mr Khoury said these rising oil prices were starting to flow through to the petrol pump.

“The national average for unleaded is $2.16 having gone up from $1.55 in July and that is a huge jump, while diesel prices are $2.65, up from $1.79,” he said.

He said the typical petrol cycle where fuel prices move seven to 10 days after a change in oil prices has been undone due to the Iran war.

“The Iran war has pretty much killed off that. We did see a slight return in July when prices were lower but that changed,” he said.

“The gap between the wholesale and retail price is barely two cents so it is really tight.”

Mr Khoury said despite sky high fuel prices, motorists could take steps to save when they filled up.

“One shop around. Get on the NRMA app, find the cheapest fuel in your local area. We know there are still unleaded prices in the high 180s, but there are also fuel prices in the 230s,” he said.