The cut could take several weeks to flow through at the bowser as supply of fuel bought at the current,higher price is exhausted.
Petrol stations have promised to pass on the excise cut in full and Federal Treasurer Josh Frydenberg said the Australian Consumer and Competition Commission would monitor prices to ensure savings are passed onto motorists.
ACCC chair Gina Cass-Gottlieb said retailers could face fines of up to $10 million for engaging in false or misleading conduct.
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The Treasurer said household budgets are being stretched as the cost of fuel,food and freight charges on goods are driven up by disruption in global markets due to sanctions on Russia over its war in Ukraine.
“Higher fuel,food and shipping costs are increasing inflation and stretching household budgets,” Mr Frydenberg said. “Whether you’re dropping the kids at school,driving to and from work or visiting family and friends,it will cost less.”
He claimed the fuel excise cut could save families with two cars $700 over the next six months.