Albanese government removes tax break: Fuel prices to rise today

The Australian government has scrapped a temporary cut to the fuel excise, meaning petrol and diesel prices will rise from Monday, with flow-on effects expected for food and freight costs. Treasurer Jim Chalmers has warned petrol stations and fuel suppliers against price gouging, asking the Australian Competition and Consumer Commission (ACCC) to closely monitor the market, with penalties of up to $100 million per offence for firms found inflating prices unfairly.

The excise discount, introduced at 32c a litre from April in response to oil price rises linked to the conflict involving Iran, was cut to 16c in July before being removed entirely. Petrol prices have already climbed by more than 40c a litre since late June, while diesel has risen by over 60c a litre in most capital cities, partly due to renewed Iran-US tensions. Industry figures, including the Independent Food Distributors Australia and the Australian Livestock and Rural Transporters Association, warned that higher fuel and road-user charges could strain freight, agriculture and food supply chains, with some truck drivers reportedly halting work over concerns customers cannot absorb the added costs.