Source : Perth Now news
Newly released data shows motorists are no longer panic buying fuel as cost pressure eases for the first time in six weeks.
Findings from Westpac bank DataX showed their customers fuel spending drop 3.8 per cent last week, following a 17.9 per cent drop the week before, marking the first consecutive week-on-week drop since the beginning of the Iran conflict earlier this year.
Despite cheaper pump prices, average fuel transaction values rose 2.9 per cent week-on-week to $59.21 as the number of overall fuel customers fell.
The change suggests short-term stockpiling is on the decline, with motorists returning to normal fuel use and abandoning precautionary fill-ups.
“Households have been under sustained pressure since early March, so seeing fuel spend fall back is a meaningful shift and suggests the fuel excise cut is landing in household budgets,” Westpac retail banking chief Carolyn McCann said.
The Albanese government earlier this month slashed the fuel excise in a bid to help struggling motorists, cutting about 32 cents per litre off the cost of Australian fuel.
Since the start of the conflict, fuel spending has been $236.7m higher year-on-year.
While spending on fuel remains 16.2 per cent higher on a year-ago basis, reports suggest increases will plateau as prices ease and households adjust.
Ms McCann warned the future of fuel spending was still uncertain.
While both regional and metropolitan customers are showing a decline in fuel spending, regional motorists continue to spend more on fuel per transaction, refuelling more regularly.
Despite customer’s higher levels of discretionary spending, early indications show a tightening of household budget may be in store as fuel’s share of wallet remains above pre-conflict levels.
