Price of unleaded petrol in Perth to soar past $2 per litre as Federal government’s fuel excise expires

The price of unleaded petrol in Perth is again set to surge past $2 per litre and there is no respite in sight, with drivers preparing to bid farewell to the Federal Government’s fuel excise cut.

The average price of unleaded petrol in Perth will be $1.96/L on Wednesday with some servos charging as much as $2.09.

Diesel users will pay even more, with the average cost $2.26/L.

The current fuel excise saving of 16 cent per litre saving is set to be wiped back to zero from Sunday, pushing bowser prices up even further.

Labor politicians have been repeatedly asked if the excise cut could be continued since fighting flared back up in Iran.

Senior minister Penny Wong had said “the intention is for that to discontinue as of this weekend”, while leader Anthony Albanese remained coy on their final decision when questioned in Karratha on Tuesday.

“We are conscious of the pressure that families are under and that is why we continue to put forward cost-of-living relief,” Mr Albanese said.

The PM’s visit to WA’s north - where he committed millions of dollars towards a study into the viability for a new oil refinery - coincided with the six-month anniversary of the initial United States and Israel strikes on Iran, which induced a global energy shock.

The nation’s low fuel reserves by international standards and reliance on refined imports had become a focal point in the wake of US-Israel strikes as usual supplies were compromised.

Australia has been left with just two refineries, in Brisbane and Geelong, after the closure of four refineries on home soil in the past decade, including one in Kwinana.

Mr Albanese and Treasurer Jim Chalmers set aside a $15 billion package in the May Federal Budget for fuel security with $10 million allocated to help feasibility studies into new or expanded fuel refining capabilities.

The government initially reduced the excise by 32 cents as the cost to fill up a tank skyrocketed, however, it only partially kept the relief when the initial round expired.

Already since the start of July, prices at the bowser have begun to rise since the war restarted — with the national average retail price of unleaded increasing from $1.55 per litre to beyond $1.90 while diesel has jumped from $1.80 per litre to $2.30.

At the height of the conflict and pressure on worldwide oil supply, unleaded petrol in Perth topped $2.50/L.

The cost of diesel was even more exorbitant, pushing well beyond $3/L towards the end of March.