Petrol prices have been rising across the country as Russia faces increased oil sanctions.
The Australasian Convenience and Petroleum Marketers Association,an industry group representing the majority of the nation’s service stations,said retailers were likely to pass on savings to customers to stay competitive.
“The way we compete is on price and we do that very transparently,” said chief executive Mark McKenzie,whose membership spans about three-quarters of Australia’s petrol station sites.
“If we get a service station that is not passing it on … those service stations are going to stand out.”
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However,Mr McKenzie cautioned that motorists should not expect all service stations to lower prices immediately because many retailers had already bought up to six days of fuel at the current excise level.
A spokesman for fuel giant BP said any change in the excise that might be announced in the budget would be considered in “any future pricing decisions”.
The expected excise reduction comes as Australian motorists have been facing record-high unleaded petrol prices above $2.20 a litre after crude oil shot past the $US100-a-barrel mark for the first time since 2014.