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Motorists should prepare for a fuel price hike in September when fuel tax ends, says treasurer Jim Chalmers

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Motorists should expect an increase in petrol prices from September, when the temporary fuel tax cut ends, treasurer Jim Chalmers said.

The fuel tax levied on every liter of fuel sold in Australia was reduced by 22.1 cents per liter in the March budget.

Both sides of politics said the six-month temporary measure was necessary. It was hoped that fuel prices would be cheaper once it ended.

Mr Chalmers said it would be “incredibly difficult” to continue the fuel tax indefinitely amid growing public debt and economic challenges such as high inflation and falling real wages.

He was asked if it would end in September.

“The short answer is yes, most likely,” Mr Chalmers told a Guardian Australia podcast.

†[People] should assume that the petrol price cut will take effect in September.

“Obviously, we’re taking into account the conditions as they evolve, and the budget and everything else.

Chalmers looks serious as he looks down and speaks from the 'Blue Room'.
The move by the previous government was intended to take the sting out of high petrol prices.ABC News: Matt Roberts

The previous government announced a six-month cut in excise duties in the March budget. The fuel tax was 44.2 cents per litre.

The move was intended to take the sting out of high gasoline prices caused by global oil restrictions.

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