“The 22.1¢ reduction in fuel excise will be passed on to our customers in full, and we expect it to be reflected in retail prices over the coming weeks.”

Service station operator BP said the excise cut would be taken to account in pricing decisions, but also cautioned the price changes “might not be reflected immediately” because some outlets would first need to sell down fuel stocks purchased at the higher excise rate.

Gina Cass-Gottlieb, the chair of the Australian Competition and Consumer Commission, said she expected fuel retailers to pass on the excise cut “as soon as possible” as existing stocks were used up, and warned the watchdog’s petrol team would be monitoring prices.

“We will contact petrol retailers to set out our clear expectations that the savings are passed on to consumers and advise them that we will be monitoring their margins,” Ms Cass-Gottlieb said.

“If retailers make false or misleading statements to consumers that they have passed on the savings when they have not, the ACCC will not hesitate to take appropriate enforcement action.”

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Across Australia and worldwide, petrol prices have been rising for months because of sharp increase in the cost of crude oil. A global supply crunch caused by oil production failing to keep pace with rebounding post-lockdown demand has been exacerbated by rolling economic sanctions placed on Russia, a major oil producer. The United States and United Kingdom, among others, have officially banned the importation of Russian oil cargoes in a bid to starve Moscow of the revenue it needs to fund the war.

However, the Morrison government’s plan to cut the excise drew criticism from some experts and motoring groups who warned it risks stalling much-needed road infrastructure funding with no guarantee it will save motorists money if volatile swings in crude oil prices continue in coming months.

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