River City motorists are being slugged hardest at the bowser, with Brisbane recording the highest fuel prices of Australia’s five largest capitals, according to RACQ’s Quarterly Fuel Price Report.
Brisbane drivers forked out 199.2 cents per litre (cpl) on average for a litre of regular unleaded during the September quarter, 10.6cpl higher than the previous quarter.
The average diesel price eased slightly from 245.6cpl to an average of 242cpl but was still higher than the other large capital cities.
RACQ’s Principal Economic and Affordability Specialist Dr Ian Jeffreys said while Brisbane topped the fuel price charts, other cities were not immune to the ongoing global conflict.
“Melbourne, Sydney, Perth and Adelaide drivers were also paying for expensive fuel – averaging higher than 195cpl for unleaded and 235cpl for diesel,” Dr Jeffreys said.
“Brisbane can be more expensive because it has fewer independent stations, reducing competition.”
Dr Jeffreys said the high prices were also largely driven by an eyewatering surge in refinery margins.*
“Last year, fuel refineries were charging an average margin of 1.2cpl for unleaded – in the September quarter that jumped by more than 2,300% to 29cpl,” he said.
“For diesel, last year the average refinery margin was 8cpl compared to 62.3cpl last quarter.
“Meanwhile, the amount service stations made on petrol sales fell from 11cpl in the June quarter to 3.7cpl in the September quarter.
“While big fuel companies appear to be making little profit at the bowser, it seems they are making up for it further upstream at their refineries.”
This has prompted RACQ to urge governments to consider reducing our dependence on imported unleaded and diesel.
“Electrification and biofuel use are the quickest ways to improve fuel security, reduce our reliance on imported fossil fuels and support our economy because electricity and biofuels are already locally produced,” Dr Jeffreys said.
“The more we can rely on our own sources, the less vulnerable we will be to oil price shocks.”
