You can expect to pay more for fuel again soon. This is why

Australian motorists have been hurt by the Bowser this year, with petrol prices exceeding $2 a litre.

That’s despite a move by the previous federal government in March to half the fuel tax in an effort to ease financial pressures on drivers.

But that reduction was not forever and the reduced rate is expire soon.

So what does that mean for drivers when they’re full of excise duties again in about three months?

What is the fuel tax?

Every time Australians buy petrol, they contribute to a pool of funds that the federal government uses for roads and infrastructure.

Simply put, you usually pay a tax of 44.2 cents for every gallon of fuel you buy – included in the price with the Bowser.

On March 30, the excise duty was halved to 22.1 cents per liter.

Why did the Morrison government cut fuel taxes?

The measure was intended to counter rising gasoline prices to ease pressure on the cost of living.

The government estimated that the fuel tax cut would save a mid-size car owner about $13 on refueling, while fleet vehicle companies are expected to save thousands.

Then-treasurer Josh Frydenberg said the competition watchdog would monitor retailers to ensure the savings were fully passed on.

“This temporary fuel tax cut will not come at the expense of road financing, which will cost more than $12 billion over the next year,” he said.

Former treasurer Josh Frydenberg had hoped the oil price would fall in September, when a fuel tax cut would lapse. AAP: Joel Carrett

How long was the cut made?

Excise duties on gasoline, diesel and all other fuels and petroleum-based products except aviation fuels were halved on March 30 at 12:01 am for six months.

The cut has provided some relief for about three months so far and will return to the full levy of 44.2 cents per liter on September 28.

Then, Mr. Frydenberg expected the price for a barrel of oil to come back to about $100 ($147), from about $115 to $120 when the price cut was introduced.

When will the full excise duty be returned?

Unfortunately, motorists can expect an increase in petrol prices from September 29.

Labor supported the Morrison government’s halving of fuel taxes.

But in the run-up to the election, both sides insisted it was only a six-month measure and the full tax would be reapplied to prices in September.

Prime Minister Anthony Albanese repeated that message to reporters this week, saying neither side had any plans to extend the cut further in the future.

“And those are the circumstances we are dealing with. We cannot do everything we would like to do,” said Mr Albanese.

“Because in the long run, if we don’t do anything to improve the fiscal position of the budget, the consequences for households will continue to flow.

“So we have tough decisions to make.”

Albanian in light blue tie with gray suit and black rimmed glasses
Prime Minister Anthony Albanese says there are no plans to extend the tax cut into the future.AP: Mark Baker

What have gasoline prices done since the excise tax was lowered?

It’s likely you’re still feeling the sting at the bow, while gasoline prices remain high.

The latest data from the Australian Institute of Petroleum shows that Australian drivers paid an average of $2.11 per liter last week.

If prices stay that way, we could pay more than $2.30 a gallon to fill up when we’re full at full excise duty in September.

However, the oil price has fallen to around $100 a barrel this week.

They are a major factor in the international benchmark prices for refined petrol and diesel, so if retailers start to reflect the cost reduction at the pump, drivers could experience some relief before full duty is reinstated.

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