How long it will take for a fuel excise cut to be passed on at the pump

The federal government is expected to cut the fuel excise by up to 20 cents a litre in tomorrow’s budget, in a bid to ease the pain at the pump.

Currently, the federal government earns 44 cents a litre for petrol.

Chief executive officer of the Australasian Convenience & Petroleum Marketers, Mark McKenzie, says if the cut is announced tomorrow night, motorists should see a drop in prices at the pump in a few days.

He says it’ll come through “as soon as the service stations have cleared the volume that’s in the ground”.

“For some service stations they’ll get daily deliveries, for others its two or three days,” he told Neil Mitchell.

Mr McKenzie says the ACCC will be watching closely to ensure the excise cut is passed on to consumers.

But he says it’s not a guarantee that petrol prices won’t rise again.

“Clearly we can’t control the global oil market so we don’t know whether that sort of dynamic will actually continue to push prices up,” he said.

Press PLAY below to hear how the expected fuel excise cut will impact prices at the pump