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Diesel pumps run dry at Mildura while north Qld drivers face long queues ahead of fuel excise increase

Service stations across the country are being inundated with motorists filling up before the federal government's fuel excise increases to its normal level tonight.  

Cars and trucks queued at the Apco service station in Mildura, in Victoria's far north-west, this morning before diesel pumps ran dry at lunchtime.

Fuel stations in Queensland and Western Australia are also dealing with long line-ups.

The panic buying has been prompted by the reinstatement of the full federal government fuel excise.

The fuel excise reduction, which was introduced in the Morrison government's final budget in March, will end at midnight.

It will see the tax on fuel increase by 25.3 cents per litre, according to the competition regulator, the ACCC.

Cairns petrol station owner Michael Salerno said people had been filling up 1,000 litre containers and 200-litre drums.

"We've been pretty busy the last few days," he said.

Petrol station 'chaos'

Apco Mildura fuel attendant Ellie Laird said it was disappointing to have to turn motorists away. 

"We do cop it a little bit [from customers] but they're pretty understanding that we just have to wait for a truck from Melbourne or Adelaide," she said.

"It's been chaotic and after the truck comes tonight it will be even more chaotic."

Ms Laird said the logistics around fuel tanker deliveries were more challenging in remote towns. 

"Nine times out of 10 we don't know where it's coming from so we just have to wait.

"The price is jumping and everyone's scared of running out of diesel."

In regional Queensland, experts expect the return of the excise will translate into unleaded petrol costing around $2 a litre.

On Wednesday, drivers in Townsville rushed to a retailer selling unleaded for 153.9 cents a litre, causing a line-up out the door at the 24-pump station.

Another north Queensland petrol station reported selling more than 5,000 litres of fuel by lunchtime, exceeding the usual daily average of 3,000 litres.

Motorists turned away

Back in Mildura, Melbourne resident Ashley Jasper said he needed fuel to drive back to Melbourne.

"We pulled in here because they were advertising $1.86 or $1.87 and of course the pumps are dry," he said.

"I think there might be a line at the next one [petrol station] if they're not already out as well."

Mr Jasper said if they were unable to refuel in Mildura this afternoon they would have to make alternative plans.

In Perth, where there are more fuel options available, locals also flocked to petrol stations to take advantage of cheaper prices.

They included Ben Mitchell, who said there "was just a load of people filling up the bays".

"I had to drive somewhere else because there were too many cars in there and I wasn't going to wait 20 minutes for petrol," he said.

"Then I went to somewhere closer that's usually cheap and they had run out of petrol entirely ... [it took me] three attempts to get petrol when I knew it was going up."

Price hike won't be felt immediately

Meanwhile, Australasian Convenience and Petroleum Marketers Association chief executive Mark McKenzie said the full price hike would not be felt at the bowser for another five to seven days.

"The excise affects the wholesale price, so it only applies to fuel delivered into the service station after midnight," he said.

Mr McKenzie said it would be a slower transition for regional and rural retailers, who could hold on to their pre-excise prices for longer because they tended to sell fuel at a slower pace than in capital cities.

He said retailers were scrambling to get their hands on more fuel before the wholesale price rose.

"There's been this mad rush as transport companies have been petitioned by retailers to get a last-minute delivery in," he said.

"If you're a shrewd operator, what you're actually doing is trying to get as much of that low excise fuel in your tanks before midnight tonight."

He said getting more stock now would help retailers remain more competitive for longer.

"There's going to be a significant period of variability, so this is the time to be using your fuel price apps."

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