Fuel Excise Cut Halved: What It Means for Australian Petrol Prices

Retail diesel prices were down 31% and petrol prices down 29% for the five largest cities as of May 27. Before the cut, prices had risen to about $3 per litre for diesel in some cities. The original 32-cent cut saved about $23 per tank. The new 16-cent discount saves about $11 on a standard 65-litre car.

University of Queensland economics professor John Quiggin told the ABC that even with the return to higher excise, retail petrol costs won't be way out of line with historical levels, at least in inflation-adjusted terms.

Australia has 3.9 billion litres of crude, diesel, jet and petrol scheduled to arrive from overseas in the next four weeks. Some of this is already on ships in transit, some awaiting departure.

The Australian Competition and Consumer Commission urges consumers to shop around for fuel and consult fuel apps and websites in their state.