Australian motorists are facing continued pressure at the petrol pump after the federal government ruled out another fuel excise reduction, despite international oil prices remaining elevated.

The latest increase in global energy prices has added to household expenses, with benchmark Tapis crude rising by about US$2 a barrel to US$110. Gas oil, commonly used as a reference for diesel prices, also increased by around US$3 to US$195 a barrel.

The higher wholesale costs are already being reflected in Australian fuel prices. Since July, unleaded petrol has become around 37 per cent more expensive, while diesel prices have climbed approximately 45 per cent.

Fuel Costs Continue to Hit Households

NRMA spokesperson Peter Khoury said international developments, particularly the conflict in the Middle East, were continuing to create uncertainty for Australian drivers.

The national average price for unleaded petrol has risen to about $2.16 per litre, compared with approximately $1.55 in July. Diesel has also increased significantly, reaching around $2.65 per litre, up from $1.79.

Mr Khoury said the traditional fuel pricing cycle has also been disrupted. Normally, changes in international oil prices gradually flow through to Australian petrol stations over roughly a week. However, recent geopolitical tensions have made the relationship between wholesale and retail prices less predictable.

Government Rejects Another Excise Reduction

Energy Minister Chris Bowen has indicated that motorists should not expect another fuel excise cut in response to short-term movements in global oil prices.

The Albanese government previously introduced temporary fuel relief during the height of the Iran conflict. The measures reduced the cost burden by combining a fuel excise reduction with GST-related support, providing motorists with approximately 32 cents per litre in relief.

That arrangement operated from April through August before fuel excise gradually returned towards normal levels.

Mr Bowen said the previous reduction had always been intended as a temporary response and that the government would not adjust the excise every time international oil prices changed.

Drivers Encouraged to Shop Around

With fuel prices varying considerably between locations, motorists are being encouraged to compare prices before filling their tanks.

Mr Khoury said drivers could use fuel-price comparison tools, including the NRMA app, to identify cheaper petrol stations. While some outlets continue to offer unleaded fuel in the high $1.80s per litre, others are charging prices above $2.30.

The NRMA has also called for greater development of Australia's biofuel industry as a way of improving fuel security and reducing reliance on international markets.

Government Focuses on Fuel Supply

Rather than another immediate excise reduction, the federal government says it is concentrating on maintaining fuel supplies.

Mr Bowen is preparing to travel to Saudi Arabia to discuss supply arrangements, with around 3.3 billion litres of fuel expected to enter Australia over the coming month.

For Australian households already dealing with higher living costs, however, elevated petrol and diesel prices are likely to remain an important financial concern while global energy markets remain volatile.

Source: Cameron Micallef – NewsWire