A number of service stations slashed their prices overnight in response to the government’s announcement it would reduce the fuel excise by 22 cents per litre, effective from midnight Tuesday.
Close to 200 servos cut their prices by 10 cents per litre or more on Wednesday morning, according to discount sites One Big Switch and Ruckus Energy.
“Some stations appear to have taken the initiative and cut prices in response to the 50 per cent discount on fuel tax announced on Tuesday,” One Big Switch spokesman Joel Gibson said.
The biggest overnight drop was 19 cents per litre at two locations. A Coles Express in Wattle Grove, NSW and Caltex Woolworths in Blackwater, QLD.
They were followed by Better Choice in Werribee, VIC, Puma Mount at Lawley, WA and Independent Rylstone, NSW, which were all between 15-17 cents per litre cheaper on Wednesday morning.
All of the locations were offering fuel for under 200 cents per litre, with the cheapest being 176.9 cents per litre at Caltex Woolworths Blackwater.
All up, 196 stations dropped their prices by 10 cents per litre or more overnight, of which, 158 of those were Coles Express locations.
“Not all Coles Express stations have cut prices, but the fact that 177 of them did so by 10-19 cents per litre appears to show a tactical response to the Budget measure,” Mr Gibson said.
“As consumers, we should reward the stations that cut their prices earliest by filling up there – and we’ll save money by doing so too.”
The Government announced on Tuesday it would reduce the 44.2 cents per litre fuel excise tax by 50 per cent, in a move to take financial pressure off motorists and households.
However, it warned it would take up to two weeks for the full 22 cents per litre saving to flow through to bowsers, despite guarantees it would eventually translate.
“For the next six months, Australians will save 22 cents a litre every time they fill up their car,” Treasurer Josh Frydenberg said in his budget night speech.
“A family with two cars – they fill up once a week – could save around $30 a week, or around $700 over the next six months.
“Whether you’re dropping the kids at school, driving to and from work or visiting family and friends, it will cost less.”
The ACCC will monitor pricing to help ensure retailers are passing on the saving instead of pocketing it as extra profit.
“The competition watchdog will monitor retailers to make sure these savings are passed through,” Mr Frydenberg said.
