5 tips to save money at the petrol pump: Government fuel subsidy coming to an end
Government fuel subsidy to end this month, adding $15.18 to the cost to fill up a 60L tank
19 September 2022
- The cost of filling up a 40L tank will increase by $10.12 while an 80L tank will cost $20.24 more
- 15% of Australians are worried they won’t be able to afford the increase and will need to significantly reduce their driving
- Almost a third (32%) will cut back on discretionary spending to afford the increase, while 16% will dip into their savings
- Mozo's tips for saving money at the petrol pump include filling up now, using apps and discounts to secure savings, and improving fuel efficiency
The government fuel excise reduction is scheduled to end on 28 September, which will see fuel prices rise by 25.3 cents per litre when taking into account GST and indexation. To help Australians manage the price increase, Mozo has come up with 5 top tips for saving money at the petrol pump.
When the excise is reinstated on 29 September, the price of filling up at a 40L tank will increase by $10.12, while a 60L tank will increase by $15.18 and an 80L tank by $20.24.
“The government's decision to reduce the fuel excise earlier in the year provided some sweet, but short relief for household budgets that had been struggling to keep up with the rising cost of living. Now once again drivers will be facing painfully high petrol prices every time they fill up, ” says Claire Frawley, Personal Finance Expert at Mozo.
Worryingly, Mozo’s research found that 15% of Australians feel they won’t be able to afford the price increase and are planning to significantly decrease their driving time. Almost a third (32%) are planning to cut back on discretionary spending to make room in their budget, while 16% say they will need to dip into their savings.
“While the increase may seem small, there's no doubt the extra cost will hit hip pockets hard, particularly after the news of a further rate hike by the RBA. But before Aussies dip into their emergency fund, it could be worthwhile getting creative about the ways they can save at the petrol pump.”
Mozo’s Tips for Saving at the Petrol Pump
- Fill up now - While this will only soften the blow for one tank, it’s still worth filling up before the excise is reinstated on 29 September, regardless of where the petrol price cycle is at, as it will be 25 cents cheaper than the following days.
- Use apps to seek out the lowest price - Utilise apps to compare fuel prices and plan when to fill up. Drivers in NSW, WA, TAS & NT can take advantage of government fuel check apps, while those in QLD and SA will need to make use of third-party apps. The state government in VIC and ACT do not currently collect this data or provide resources.
NSW Fuel Check
WA Fuel Watch
Fuel Check TAS
My Fuel NT
QLD Third Party Fuel Price Reporting Apps
SA Third Party Fuel Price Reporting Apps
ACC Petrol Price Cycle tracker
- Lock in the price ahead of time - Some fuel retailers like 7/11 allow customers to lock in petrol prices ahead of time. If drivers are in a suburb where petrol is cheaper but are not in the position to fill up, locking in a cheaper price could see them reduce the cost of their next tank.
- Take advantage of discount vouchers - Aussies should remember to look at the back of their grocery receipts before throwing them out, with some bigger retailers like Coles and Woolworth including discounts for their partnered petrol outlets. Alternatively, some store rewards cards or memberships can also come with discounts and other special benefits for partnered petrol stations.
- Clear out the car boot - Carrying around a heavy load in your car boot will require your car to work harder, and ultimately use more petrol. Drivers should regularly make time to clean the junk out of their cars to improve fuel efficiency.
Notes: Mozo commissioned a nationally representative survey of 2,303 Australians conducted by Researcify between August - September 2022.