Transport companies and motorists are facing a big petrol bill in the coming weeks with the return of the full fuel excise set to add on an extra 22 cents a litre at the pump.
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The federal government halved the fuel excise in March for six months in a bid to reduce pressure on the cost of living, but the discount is set to end at 11.59pm on Wednesday, September 28.
Prices are not expected to jump up straight away. In fact, regional areas could continue to benefit from lower-taxed fuel for several weeks, with city-based petrol stations likely to have to buy fuel at the higher price sooner than regional stations because of higher turnover.
Bendigo petrol outlets are still selling unleaded fuel for under 160 cents a litre but that is expected to jump by more than 20 cents a litre within the next few weeks.
Bendigo-based courier companies are bracing for the price rise.
Regional Freight Express manager Erik Wynveen said his business would have no option but to pass on the extra cost to customers.
"We don't have the margin to cope with drastic rises," he said.
Most businesses already pay less tax on petrol thanks to a fuel tax credit system that gives eligible businesses refunds.
"It means for our type of business, we are reimbursed for a tax on a tax sort of thing," Mr Wynveen said.
"When the excise dropped, the fuel tax credits also dropped so we only received a three per cent drop (in fuel expenses).
"When the excise goes back up, the fuel tax credits will be re-introduced so it's giving with one hand and taking away with the other.
"It all depends how quickly the price rise comes through and whether it's 22 cents or higher."
Mr Wynveen said his company couldn't really subsidise customers from any fuel rise and admitted people would likely shop around looking for better deals with freight companies.
"Most of our customers are loyal to us and understand the circumstances we're in," he said.
"We will see an effect on the business. Fuel can't go up 20 per cent and not have an impact but most of our customers are understanding."
Pack and Send's Daniel Bice admitted the price rise would hurt but was not as bad off as others in the industry.
"We don't have a large fleet going in and out. A large part of our business is brokering," Mr Bice said.
"Dollars are getting tighter for everybody. We just run harder for less."
He said increases in the price of fuel would go across all industries and it was hard to absorb the cost, with any price rises eventually being passed on to consumers.
Federal treasurer Jim Chalmers said there would be more than 700 million litres of lower-excise fuel in the system when the excise is re-introduced, so the price should not shoot up immediately.
Experts admit the key driver of bowser prices is the global oil price, which has been under pressure due to Russia's war in Ukraine.
Bowser prices are only likely to drop when the global price starts to stabilise.
- with AAP
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