You can expect to pay more for fuel again soon. This is the reason

Australian drivers have been suffering from bowser pain this year, with petrol prices topping $2 per liter.

That’s despite the federal government’s move earlier in March to half of the fuel excise tax in a bid to ease financial pressure on drivers.

But the cuts are not forever and the reduced rates are coming to an end.

So what does it mean for drivers when they are again saddled with full excise duty in about three months?

What is a fuel tax?

Every time Australians buy gasoline, they contribute to a pool of funds that the federal government uses for roads and infrastructure.

Simply put, you usually pay 44.2 cents in tax for every liter of fuel you buy — included in the price at Bowser.

Excise duty was halved on March 30 to 22.1 cents per liter.

Why did the Morrison government cut fuel taxes?

The move is aimed at battling a spike in gasoline prices to ease cost-of-living pressures.

The government estimates cutting fuel excise taxes will save midsize car owners about $13 when filling them up, while businesses with fleet vehicles are expected to save thousands.

Then-treasurer Josh Frydenberg said competition watchdogs would monitor retailers to ensure savings were passed on in full.

“This temporary reduction in fuel excise duty will not burden road funding, which will cost more than $12 billion in the coming year,” he said.

Former treasurer Josh Frydenberg hopes oil prices will drop in September, when the fuel tax cuts will end. (AAP: Joel Carrett)

How long did it take for the piece to be installed?

Excise duty on gasoline, diesel and all other fuels and petroleum-based products, except aviation fuel, was cut in half for 6 months starting at 12.01 am on March 30.

The cuts have provided some relief for about three months so far and will return to the full levy of 44.2 cents per liter on Sept. 28.

That’s when Mr Frydenberg predicted the price of a barrel of oil would return to around $100 ($147), down from around $115 to $120 when the cuts were introduced.

When will the full tax return?

Unfortunately, drivers can expect to see a spike in gasoline prices starting September 29.

The Labor Party supports the Morrison government’s halving of fuel taxes.

But ahead of the election, both sides insisted it was only six months of action and the full tax would be re-applied to prices in September.

Prime Minister Anthony Albanese repeated that message to reporters this week, saying the two sides had no plans to extend the cuts further in the future.

“And that’s the situation we have to face. We can’t do everything we want to do,” said Albanese.

“Because in the long term, if we don’t do something to improve the fiscal position of the budget, the impact on households will only flow downwards.

“So we have a tough decision to make.”

Prime Minister Anthony Albanese said there were no plans to extend excise cuts in the future.(AP: Mark Baker)

What have gasoline prices been doing since the excise tax was cut?

Chances are you’re still feeling the sting of gasoline prices that remain high.

Recent data from the Australian Institute of Petroleum shows Australian drivers last week paid an average of $2.11 per liter.

If prices stay that way, we could pay more than $2.30 per liter to fill them when we’re saddled with full excise duty in September.

However, oil prices have fallen this week, to around $100 a barrel.

They are an important factor in international benchmark prices for refined gasoline and diesel, so if retailers start reflecting cost reductions at the pump, drivers could see some relief before the full excise duty is reinstated.

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