Australians are being warned to brace for higher fuel costs from Monday as the Federal Government’s temporary fuel excise relief comes to an end, with the Coalition claiming motorists will soon “feel the pain” at the bowser.

Deputy Opposition Leader Jane Hume said the expiry of the relief would add to cost-of-living pressures already weighing on households, accusing the Albanese Government of failing to tackle the underlying drivers of inflation.

Appearing on ABC’s Insiders on Sunday, Senator Hume said while the Coalition had backed the temporary fuel excise cuts when global fuel prices were volatile, Australians were now paying the price for what she described as Labor’s broader economic failures.

“Australians are going to feel the pain,” she said.

“The pain would have been lessened if we were a more resilient economy, and the government had done its fair share of the heavy lifting to get inflation down.”

Pressed repeatedly on whether ending the fuel excise relief was the right decision, Senator Hume declined to directly answer, instead insisting responsibility rested with the Government.

“It’s a decision for the government,” she said.

She argued Labor had failed to use fiscal policy to help curb inflation, instead leaving the Reserve Bank to shoulder the burden through higher interest rates.

“If the government would get inflation under control by doing its fair share of the heavy lifting, using fiscal levers to manage inflation, not just relying on monetary policy, we would be in much better shape when these international shocks occur,” she said.

Senator Hume also pointed to the Coalition’s longer-term fuel security policies, including plans to expand Australia’s fuel reserves, increase storage and refining capacity and support alternative fuels such as biofuels.

“That’s how you fix the problem,” she said.

Treasurer Jim Chalmers has written to the Australian Competition and Consumer Commission asking for increased scrutiny of fuel prices to ensure they weren’t being artificially inflated at the expense of motorists.

“Servos and suppliers are on notice - the regulator will be watching them like a hawk,” he said, adding that the fuel excise discount had “helped take the sting out of petrol prices at their peak”.

The Government’s temporary fuel excise relief officially expired on Sunday night, meaning motorists are expected to begin paying higher prices at service stations as the full excise returns.

Fuel taxes were reduced by 32c a litre from the start of April in response to soaring oil prices due to the conflict in Iran.

The discount was wound back to 16c from the start of July, before ending altogether after Sunday.

While the latest price increases could take time to filter through to bowsers, petrol costs have already risen by an average of more than 40c a litre since the end of June.

Diesel prices have soared by more than 60c a litre in most capital cities over the same period, which has coincided with breakdowns in a ceasefire between Iran and the US.

The end of the relief comes as Australians continue to grapple with elevated living costs, with petrol prices remaining a key contributor to household budgets despite easing from recent highs.

with AAP