Australian motorists face continued high fuel costs as government officials have ruled out further reductions to the fuel excise, signaling that elevated prices are likely to persist in the coming months. The latest data shows a continued upward trend in crude oil and diesel prices, exacerbating pressure on household budgets.

Overnight Monday, the price of Tapis crude oil, which supplies the Asian market including Australia, increased by $2 per barrel to US$110, or approximately A$154.21. Diesel, also known as gas oil, surged by US$3 to US$195 per barrel. These price hikes follow significant fuel cost escalations since July, with unleaded petrol rising by about 37 percent and diesel prices climbing nearly 45 percent during this period.

Peter Khoury, spokesman for the National Roads and Motorists’ Association (NRMA), noted that the geopolitical situation in the Middle East remains unsettled, contributing to ongoing volatility in oil markets. “We’ve been seeing oil prices continuously going up. Unfortunately, that doesn’t look like it is changing anytime soon, especially not in the short term,” he said.

Khoury outlined how rising global oil prices are reflected at the pump, with the national average price of unleaded petrol reaching $2.16 per litre, up from $1.55 in July. Diesel prices have also risen sharply, now averaging $2.65 per litre compared to $1.79 just a few months ago. He advised motorists to mitigate some of the impact by shopping around for cheaper fuel options using resources such as the NRMA app, which tracks local price variations.

Despite public calls for further relief, Energy Minister Chris Bowen reaffirmed that the government will not reinstate the temporary fuel excise cut that was in place earlier this year. The measure, implemented from April to August during heightened tensions linked to the US-Iran conflict, had provided motorists with a 32-cent per litre discount.

Bowen emphasized the excise cut was always intended as a temporary response. “We were very clear that the excise cut was temporary, we did extend it a bit so it gradually returned to more normal levels but we are not going to respond to every daily movement on the world oil price,” he said in an interview.

With these factors in play, Australians should anticipate enduring higher fuel prices for the foreseeable future as global market dynamics continue to influence domestic costs.