Territory drivers fill up as federal fuel excise subsidy ends today | NT Independent

Territory drivers fill up as federal fuel excise subsidy ends today

by | Sep 27, 2022 | News | 0 comments

Just as Darwin motorists were starting to feel relief at pumps, Territorians can expect to be slugged with higher fuel prices as the Federal Government’s fuel excise cut ends today, which is expected to push fuel prices up by an average of 22 cents per litre or around $15 to $30 per tank.

The temporary reduction to fuel excise has enabled motorists to save 22.1 cpl since being implemented in March, although it took many months to be felt in the NT, where motorists continued to pay the highest prices in the country until only recently.

On Monday, Darwin had the lowest average unleaded price of all capital cities, at least 20 cents cheaper than elsewhere, and came after months of paying 30 cents more per litre than the rest of the nation.

The ending of the federal fuel excise cut will put upward pressure on both petrol and diesel prices when indexation against inflation and the additional goods and services tax are factored in.

The Federal Government earlier said the temporary suspension of the tax cannot continue beyond today due to the cost to the budget, which the government said was $3 billion.

At the Territory level, the Opposition CLP said the Fyles Labor Government should be taking action to ease the greater pain Territorians are about to feel at the pump and back their calls for the Fuel Price Disclosure Bill that would force fuel companies to explain their prices.

“Our plan will have real world impacts, putting downward pressure on prices and providing relief at the bowser for Territorians who are choosing between tomatoes at the grocery store or fuel in the car,” said CLP Business spokeswoman Marie-Clare Boothby.

“The Fyles Government doesn’t seem to understand or care about the pressures families face in trying to make ends meet.

“We need a government that works in the best interests of Territorians, not a government looking after its own best interests.

“When it comes time to support our Fuel Price Disclosure Bill we will see whose side the Fyles Labor government is on.”

Chief Minister Natasha Fyles said on Mix 104.9 that her government had “taken a number of steps” to “promote competition” and had written to fuel retailers to address concerns about prices.

She added that she had heard back from “some of the retailers” and the Australian Competition and Consumer Commission, but did not say what the responses were.

“We have a number of retailers and they have small volumes that they sell of fuel as opposed to some high volume places [interstate],” she said.

“They do have thin margins is my understanding. But this is an area that the ACCC have assured us that particularly in the Northern Territory, they’re watching.”

Consumer burden

Consumers will be further burdened as the resumption of the excise tax on fuel comes at a time when cost-of-living pressures and interest rates continue to shoot up.

Australian Competition and Consumer Commission (ACCC) Chairwoman Gina Cass-Gottlieb urged motorists to shop around to find better fuel prices.

“Shopping around and using fuel price apps can help consumers find the cheapest petrol in their area,” she said. “Our previous research has shown that buying at independent retailers and avoiding the top of the petrol price cycle in the five largest capital cities can save motorists a lot of money.”

Federal Coalition and crossbench MPs have called on the Federal Labor Government to extend the fuel price relief to help counter the rising cost of living.

Liberal MP Bridget Archer accused the Albanese Government of failing to put in place any solution to address the rising cost of living since it won the May election.

Nationals MP David Gillespie said the end date set for the price relief measure was set by the Morrison government and was included in the March budget.

“When those announcements were made, the thought was that things might turn back to normal pretty quickly,” he said. “We were hoping that Ukraine and Russia might come to terms, and there would be a flow of liquid and gas as per normal, but that is not happening anytime soon.”

Mr Gillespie said an extension to the price relief is now justifiable: “It is a reasonable response to an extraordinary situation, a shortage of liquid fuel around the world.”

Nationals MP Darren Chester, also said that while prices remain high, the interim measure had to remain in place for longer to help people living in regional areas.

“I would like it extended given the disproportionate impact it has on regional motorists who often don’t have access to public transport,” he said.

 

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