Scott Morrison has ruled out lowering fuel prices for struggling families stating tax breaks and handouts have been given right through the global pandemic.
Melbourne fuel prices are set to soar from the middle of this month where prices are expected to hit $2.50 per litre, Treasurer Josh Frydenberg is now facing calls to cut the fuel excise, which is taxed at 44 cents per litre, as prices creep towards $2 a litre.
Industry experts believe prices will stay high and could even remain above $2 a litre for the rest of the year.
KPMG chief economist Brendan Rynne said a small rise in prices at the bowser was expected within two to three days but then a jump by as much as 20 per cent was possible in coming weeks.
“So, it might be nudging $2.40 (for standard fuel) within the next month but it shouldn’t stay there for long,’’ Dr Rynne said.
But prices will remain higher than motorists had seen in recent times, he said, staying in the $2 and above range for the rest of the year.
Unleaded 91 prices across Melbourne on Tuesday varied between $1.80 and $2.02 a litre, while premium fuel such as unleaded 98 was as expensive $2.31 in South Melbourne, according to PetrolSpy.