Reduced global supplies of diesel have been blamed for keeping Australian prices stubbornly high while petrol prices fell.
Australia's consumer watchdog has tried to explain why diesel remains so expensive at the bowser compared with petrol.
Reduced supplies of diesel from Russia and from France due to refinery strikes, combined with increased demand for heating in the northern hemisphere winter kept diesel prices high, the Australian Competition and Consumer Commission said in a report today.
Amid all the controversy over the six month fuel excise cut and then its return last September, the government in December directed the ACCC to monitor fuel prices and produce this, the first of its quarterly reports.
It's of no surprise to any diesel-user that petrol prices rose slightly while diesel prices "remained significantly higher".
Quarterly average retail petrol prices in the five largest cities (Sydney, Melbourne, Brisbane, Adelaide and Perth) were 182.7 cents per litre, a rise of five cents from the previous quarter.
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At the same time, average retail diesel prices were 222.9 cents per litre in the quarter, more than 40 cents higher than average petrol prices.
"Our report shows a range of international factors contributed to higher retail diesel prices in Australia," ACCC chair Gina Cass-Gottlieb said.
She said the small rise in petrol prices came from the removal of a excise tax cut, partially offset by a decline in international petrol prices.
Diesel prices have spiked largely as a result of the Russian invasion of Ukraine, the ACCC said.
Australian fuel prices are largely determined by global refined fuel prices, which are influenced by international crude oil prices, and the Australian dollar exchange rate.
"Russia's invasion of Ukraine led to international diesel prices moving higher than petrol in early 2022," Ms Cass-Gottlieb said.
"While international refined fuel prices reduced in the December quarter, the difference between the diesel and petrol benchmarks continued."
She said crude oil prices continued to fall in the December quarter amid concerns about a potential global recession, rising interest rates and lower demand.
"Despite lower international prices, the influence of the fully restored fuel excise and a lower exchange rate meant overall that average retail petrol prices across the largest cities were slightly higher than in the previous quarter," Ms Cass-Gottlieb said.
Chris McLennan
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
