Australian motorists say they are being gouged at the petrol pump after the fuel excise discount was halved.

Seventy-nine per cent of Australians believe this has been the case since the tax discount was reduced from 32c per litre to 16c at the end of June, Finder research reveals.

The NRMA says fuel prices have jumped in the last week, with the cost of regular unleaded in Sydney soaring 17 cents a litre to 164.4. Diesel fuel rose 21.1 cents per litre to 182.2.

The NRMA says there will be more pain for motorists in the weeks ahead.

“Prices are expected to rise a further 3 cents per litre in Sydney over the next week or so,” NRMA fuel watch says.

“Regional price increases in the order of at least 6 cents per litre will take longer to pass through but it is dependent on when retailers replenish their stock.”

On March 30, the fuel excise was halved for three months.

The federal government measure reduced the price of fuel by 26.3 per cent per litre, dropping the cost of filling a 50-litre tank by $13 and an 80-litre tank by $21.

The states later said they would return excessive GST revenue to motorists, saving them a total of 32c a litre.

Fuel prices temporarily hit a five-year low due to the halving of the fuel excise.

But from July 1, the discount in response to the US-Iran war was further halved from 32c a litre to 16c a litre.

The taxes on fuel will return to pre-war levels from August 2, 2026.

Treasurer Jim Chalmers said the extension of the fuel excise was providing responsible help with cost of living because fuel prices were hurting Australian motorists.

“This extension of the fuel tax cut recognises there’s still a lot of uncertainty in the Middle East and the global economy more broadly, and our action provides a graduated return to normal settings for the fuel excise,” he said.

“The additional relief we’re providing means that from 1 July, we’ll have more temporary help with the cost of living with this extension to the fuel tax cut, and more permanent help with the cost of living with another round of tax cuts for every taxpayer.

“We thank the states and territories for contributing to the fuel tax cut.”

The excise cut was introduced in response to rapidly rising fuel prices due to the US/Iran war and the closure of the critical Strait of Hormuz, where 20 per cent of the world’s energy flows through.

The strait’s closure disrupted 20 per cent of global oil and gas supplies and lifted the price of oil to about $US120 ($A172) a barrel before a shaky peace deal was signed.

Oil prices then reverted to near pre-war levels of about $US70 ($A100) a barrel.

According to AMP, Australians pay an extra 10 cents at the fuel pump for every $10 increase in the price of oil,

Fuel retailers on notice

The ACCC wrote to fuel retailers late last week reminding them “not to take advantage of the partial restoration in excise to profit at the expense of consumers”.

“We will closely examine fuel price movements and market behaviour, both in the lead-up to and following the increase in fuel excise,” ACCC Commissioner Anna Brakey said.

“We will not hesitate to take action if retailers make false or misleading statements about price movements or if there is evidence of anti-competitive behaviour.”