Australia restores partial fuel excise amid falling pump prices

The Australian Competition and Consumer Commission (ACCC) warned fuel retailers that the temporary cut to fuel excise will be partly restored on 1 July, reducing the discount from 32 cents to 16 cents per litre until 2 August. ACCC Commissioner Anna Brakey said the regulator will monitor price movements closely and act against false or misleading claims.

Average petrol and diesel prices have fallen back to pre‑conflict levels, with unleaded in Sydney and Melbourne dropping below $1.56 per litre and diesel under $1.78 per litre, roughly 40 % cheaper than the peaks reached during the Iran‑related oil shock. The price relief follows a cease‑fire in the US‑Iran conflict and a reopening of the Strait of Hormuz, which together have pushed global crude prices down.

Australia’s headline inflation is expected to peak around 4.25 % mid‑year, helped by lower oil prices, though industry groups warn that delayed effects on transport, manufacturing and agriculture could push the CPI into the “upper 4s” later. The Australian Industry Group noted that three‑quarters of domestic fuel is used in industry, so secondary inflationary pressures may still emerge.

In the United States, Federal Reserve officials, including Richmond Fed President Tom Barkin, noted that falling gasoline prices after the cease‑fire give the Fed breathing room on inflation, though they cautioned that any resurgence of conflict could reverse the trend.