Aussie drivers warned to get fuel now as prices are set to jump: What you need to know

Holidaymakers are being urged to fill up their cars now to take advantage of cheaper petrol before the fuel excise rises. 

Victorian Automotive Chamber of Commerce chief Peter Jones warned drivers to get in early before the price rise flows through to the petrol bowsers.

‘Motorists are already under cost-of-living pressure, so if you need fuel, it makes sense to fill up before the increase hits,’ Mr Jones told AAP on Tuesday.

‘But we are also asking people to be respectful. Service station staff are doing their job and they should not be blamed for fuel prices they do not control.’

The Australian Competition and Consumer Commission has put fuel retailers on notice, saying it will closely monitor fuel prices as the changes take effect.

Petrol prices have fallen to their lowest levels since the Iran conflict began in February, but they are set to increase again when the tax on fuel rises by 16 cents per litre on Wednesday.

The excise rate – still reduced from the standard rate of 52.6c per litre – will remain in place until August 2 in an attempt to shield drivers from the impact of higher global oil prices.

It represents a halving of the 32c per litre discount put in place in April and equates to a saving of about $11 when filling up a car with a 64-litre tank.

Unleaded petrol prices were on Tuesday averaging $1.54 per litre in Melbourne, $1.55 per litre in Brisbane and between $1.50 and $1.58 per litre in Sydney.

It comes as many Australian states are on school holidays or within reach of the winter break.

Amid cost-of-living pressures, many families are opting for holidays within driving distance of where they live.

Victoria, Queensland, the ACT and the Northern Territory are already on school holidays. New South Wales, South Australia and Western Australia start their break on Monday.

Tasmanian schools don’t start their mid-year break until July 11. 

The Australian Competition and Consumer Commission (ACCC) recently wrote to fuel retailers, reminding them not to take advantage of the increase in excise to profit at the expense of consumers.

‘We will closely examine fuel price movements and market behaviour, both in the lead up to and following the increase in fuel excise,’ Commissioner Anna Brakey said.

‘We will not hesitate to take action if retailers make false or misleading statements about price movements or if there is evidence of anti-competitive behaviour.’

Treasurer Jim Chalmers said the reduced fuel excise was providing cost-of-living help at a time when households were under financial pressure.

‘Fuel prices have come down very considerably and in very welcome ways,’ he told reporters.

‘Our fuel excise cut is part of the story, but also we’ve seen some welcome developments in the Middle East playing out in global oil markets.’

Mr Jones said the decision to taper the fuel excise relief, rather than end it immediately, was a sensible short-term measure.

‘This staged approach is welcome because it recognises that fuel price pressure does not disappear overnight,’ he said.

‘A sharp return to full fuel excise would have added another cost shock at a time when many auto businesses are already managing higher operating costs across the board.’