RACQ calls for an end to unjustified price hikes
Unleaded petrol prices have jumped from a low of 179.9 cents per litre (cpl) to 229.9cpl at more than 16% of sites across Brisbane. At this price, indicative retail margins are a staggering 56cpl.
RACQ’s Principal Economic and Affordability Specialist Dr Ian Jeffreys said retail margins were significantly higher than what they should be.
“Global oil prices have decreased, so charging 229.9cpl for unleaded, with a retail margin of 56cpl, is unacceptable and unjustified,” Dr Jeffreys said.
“At the beginning of 2023, retail margins during the price hike were 36cpl. But in recent price cycles, retail margins were hitting close to 50cpl and now this hike is even higher.
“Given the usual pattern of previous price cycles and margins, a more palatable high price would not exceed 210cpl.
“We’re incredibly concerned by these high margins, particularly when cost-of-living pressures are already hurting Queensland motorists.”
Dr Jeffreys said the market is not working in the best interests of motorists, compared to other parts of Australia, and something needs to change.
“We’re calling on the State Government to consider options to limit peak and average fuel price increases,” Dr Jeffreys explained.
“After considering various regulatory approaches, our preferred option is to set a maximum amount by which retailers could raise prices on one day, such as five cents per litre plus any change in the wholesale price.
“This would bring an end to the sudden and dramatic spikes we currently see in the south east, allowing motorists to plan purchases around a more measured increase in prices.”
Fair fuel prices are one of RACQ’s top 10 priorities in the lead up to October’s state election. We want Queenslanders to have their say at www.racq.com.au/election.
Motorists were being urged to fill up now at sites still charging 179.9cpl or less and use RACQ’s Fair Fuel Finder to locate the stations that had not hiked their prices.
Table 1: Indicative Retail Margins rising steadily since 2022
|
Price hike date |
Indicative Retail Margin (IRM) on new high price |
Common High Price |
|
1/02/2023 |
36.3 |
209.9 |
|
5/04/2023 |
31.8 |
209.9 |
|
27/05/2023 |
38.3 |
207.9 |
|
12/07/2023 |
43.5 |
209.9 |
|
16/08/2023 |
43.5 |
229.9 |
|
26/09/2023 |
45.3 |
237.9 |
|
11/11/2023 |
46.6 |
225.9 |
|
4/01/2024 |
47.3 |
213.9 |
|
26/02/2024 |
49.7 |
231.9 |
|
10/04/2024 |
47.4 |
235.9 |
|
04/06/2024 |
56.1 |
229.9 |
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