Petrol prices set to rise again - here's how to save

A fresh fuel price hit is looming for Australian drivers, with the return of the full fuel excise expected to add about 17.5 cents a litre to petrol and diesel from August 3.

That could mean paying more than $10 extra to fill a family-sized car, just as global oil prices continue to climb.

Motorists who need fuel in the coming days may want to act now. Experts say prices are likely to rise as service stations begin replenishing stocks after the tax increase, meaning drivers who fill up this week could avoid some of the incoming pain at the bowser.

What's happening to fuel prices?

Fuel prices have already risen sharply this month, with regular unleaded increasing by about 20 cents a litre in some capital cities over the past two weeks.

"In our major capital cities, we've seen a 10 cent (per litre) increase in the regular unleaded price in the last week, and that follows a similar increase the week before," says Dr Ian Jeffreys, principal economic and affordability specialist at the Royal Automobile Club of Queensland.

The increase in diesel prices has been "significantly higher", he adds.

Early this week, motoring groups reported the average national bowser rate for unleaded was around $1.90 per litre, while for diesel it was around $2.30.

The recent increases have been driven by escalating conflict between Iran and the US and continuing fighting between Russia and Ukraine, but NRMA spokesperson Peter Khoury says prices are about to get even higher.

"We've seen those national averages go up somewhat significantly in the last few weeks. And unfortunately, given what we're expecting next Monday, we will see that continue."

Why petrol prices could rise from August 3

Monday, August 3, will see the fuel excise (the federal government's fuel tax) return in full, after months of discounts designed to ease cost pressures on consumers.

On top of this incoming 16 cents per litre levy, an extra one or two cent charge will also be added to the tax, as it's adjusted in line with inflation.

The exact increase will depend on how much of the excise is passed on by retailers and local competition.

What is the fuel excise?

The fuel excise is a tax on petrol and diesel designed to fund Australia's road and transport infrastructure.

It's charged on wholesale prices and then filters down to the price consumers pay at service stations.

It's normally 52.6 cents per litre, but was halved to 26.3 cents in March, after fuel prices spiked following the outbreak of war between Iran and the US.

A federal deal with the states and territories soon after cut it by another 5.7 cents.

This lower rate applied until the beginning of this month, when the federal government re-introduced some of the tax.

Next week is expected to see the remaining discount wound back and the excise return in full. The inflation indexing is expected to take the incoming charge on prices to around 17.5 cents per litre.

How much more could drivers pay?

"[The fuel excise] is applied at the wholesale level. So that won't immediately hit retail prices," explains Dr Jeffreys, who says when the extra charge will flow through to bowser prices depends on where you're filling up.

"The capital cities respond quicker because those retailers will be getting resupplied quicker... then regional cities next and more remote locations last."

How you can save

Experts say you shouldn't let fear of fuel shortages drive you to buy more fuel than you need.

"It's the only way you're going to create a supply issue, given that Australia has secured supply for the months ahead," says Khoury.

Seeking to shore up confidence in the national stockpile, Prime Minister Anthony Albanese said on the weekend there's more fuel in Australia today than there was when conflict kicked off between Iran and the US in February.

1. Shop around

Even as prices increase, there can be big differences between fuel costs per litre between competing petrol stations in the same area.

A difference of 20 cents per litre could save a driver $12 on a 60-litre fill. For someone filling up weekly, that's more than $600 a year.

Luckily, there are dozens of free apps and websites you can use to find the cheapest price near you.

Most draw their prices from government databases that retailers are required to report to, while others rely on crowdsourcing for their data.

In addition to the retailer databases, most state and territory governments also operate their own local price comparison apps and websites for consumers.

Money motoring expert and host of The Right Car channel on YouTube, Matt Campbell, says it can pay in the long run to try premium fuels, even if these are more expensive.

"You might see better efficiency from your petrol engine than if you bought the cheaper fuel," he says. "You might spend a little more, but you might end up getting more kilometres per tank."

2. Care for your car

Campbell also has two main practical tips for how you can treat your vehicle differently to save fuel.

Check your tyre pressure

"If you are running a low tyre pressure, you're putting more load on everything," he says.

"If your tyres aren't at the right level, then you will potentially be using more fuel."

Clean out your boot

"Take stuff out of your car that you don't need in there. Some people have a boot full of stuff that they just take everywhere, and we're talking potentially an extra 100 kilograms of stuff. Take that out. If you add weight, it adds to your fuel consumption."

3. Avoid aggressive driving

Rapid acceleration, hard braking and speeding can all increase fuel consumption.

Maintaining a steady speed and anticipating traffic conditions can help reduce fuel use.

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