Fuel prices are expected to rise sharply due to the end of the Federal Budget’s six-month reduction in fuel excise.
The reduction was in place from 30 March to 28 September 2022 and applied to equivalent customs duty rates for petrol, diesel and all other fuel and petroleum-based products – except aviation fuels.
However, the Australian Competition and Consumer Commission (ACCC) has committed to making sure retailers wait until stock in the supply chain is exhausted before applying the new price.
The Australian Tax Office (ATO) is advising operators to be aware that increased fuel tax credit rates will apply, meaning eligible businesses must apply the application fuel tax credit rate based on the date the fuel was acquired.
It has also stated that eligible businesses using fuel in heavy vehicles for travelling on public roads can claim fuel tax credits for fuel acquired.
However, they cannot be claimed between 30 March to 28 September 2022 because the road user charge exceeds the excise duty paid.
The road user charge for liquid fuels will increase to 27.2 cents per litre, and the fuel tax credit rate for fuels used in heavy vehicles will change to 18.8 cents per litre.
For the latest fuel tax credit rates visit ato.gov.au/fueltaxcreditrates.