Unleaded prices down, diesel prices up as expert warns excise and GST cuts won’t last long

Fuel excise relief is trickling through to Perth petrol bowsers on Saturday, but the price of diesel is still going up as experts warn Government intervention won’t make much of a difference for long.

Prices dropped slightly for unleaded fuel to an average of 222.9 ¢ per litre on Saturday, a modest move from Friday’s 226.3 ¢.

Liberty in Beckenham is the only petrol station that will sell unleaded for less than $2 a litre, while the highest price in the State is 270.5 ¢ being charged in Albany.

The average price of diesel is back up to 305.5 ¢ per litre, and 308.2 ¢ for brand diesel that includes ultimate and V-power.

The decision by state and territory leaders to contribute $400 million of the GST windfall that’s resulted from higher fuel prices has increased the Albanese Government’s cut to fuel excise to 32 cents, with the full impact expected to take a week to flow through as outlets re-stock.

Given fuel ordinarily hovers around the 160 cents per litre, 10 per cent of that — or 16 cents — goes back to the State and Territories under the goods and services tax.

But with prices having significantly risen and only now reducing slightly thanks to the Federal Government cutting the fuel excise in half, motorists are expected to soon cop prices around 215 cents-per-litre before the fuel excise.

This means the States would get an extra 5.5 cents for every litre bought than before the war broke out.

Premiers and Chief Ministers agreed to slash 5.7 cents off excise on Thursday, to return GST receipts closer to previous levels.

The reduction in excise will last until 30 June.

But independent economist Conrad Liveris warned the move will only provide a brief respite.

“It shows that all boats are pulling together, and that every Government is in a unified position that they want to contribute something because this is a very immediate, albeit short term cost of living relief,” he said.

“That’s the only reason that I can see that they’re doing it, but I’ve really got to stress the point, this is temporary, within two weeks it’s very likely that petrol prices will be back to where they were, say a week ago, in that $2.50 and above range.”

It’s unclear if state leaders will re-assess their GST cut if, or when, prices surge again.

Premier Roger Cook, who chaired the negotiations, said the 5.7 ¢ cut was chosen from a range of possibilities based on modelling of the total amount of GST revenue resulting from higher prices.

“It’s an estimate, to be frank. We were dealing with modelling which suggested it was somewhere between $350 million and up,” he said.

“I saw some estimates around $700 million but I think $400 million was the quantity that was agreed between the States and the Commonwealth.”

As fuel anxiety lingers it was revealed that the FuelWatch website has recorded more than five million visits as more people shop around for the cheapest prices and to confirm if fuel is available nearby.

On Friday, 16 petrol stations were without any fuel at all while 13 service stations were out of only unleaded fuel and 17 were without diesel.

Ampol had the most outlets struggling for supply with 20, while Shell had 11 missing at least one type of fuel — predominantly diesel.

Pumps were also turned off at the traditionally cheap fuel spots of Costco Casuarina and Perth Airport, for the first time since the war broke out.

Federal Energy Minister Chris Bowen has tried to allay concerns over supply, saying “well over 50 ships” are on their way to Australia.

“They’re getting more expensive and getting riskier with the volatile oil price. We want to help and we are helping,” he said.

“We have always made crystal clear there are risks across the board, particularly as you look now, well into May and into June.

“But, we are pleased with the forward indicators of supply now all through April and into May. That’s a good thing.”