Bad news for Aussie drivers! Petrol prices have skyrocketed by almost 60 cents per litre at some service stations in South East Queensland.
And, it’s not just a minor increase – it’s the highest prices have been in the southeast of the state for nearly 12 months.
Unjustified Price Hike?
RACQ head of public policy Dr Michael Kane says the massive spike is “unjustified and unfair”. He believes that taking into account all market factors, prices should only increase by a maximum of 207 or 209 cents per litre.
The blame game is on, with service stations citing international factors like the conflict in the Middle East and volatile global oil prices.
But, Dr Kane says wholesale fuel prices haven’t increased significantly, so the huge hike at the bowser doesn’t add up.
Fuel Companies Under Fire
Fuel companies in the southeast have been accused of taking advantage of drivers, with some retail margins as high as 52 cents a litre.
Treasurer Jim Chalmers has written to the consumer watchdog, requesting them to keep an eye on petrol stations that might be using the Middle East tensions as an excuse to hike prices opportunistically.
What’s Driving the Price Hike?
According to the Australian Competition and Consumer Commission, retail fuel prices in Australia are largely determined by global factors influencing international crude oil and refined fuel prices, as well as the value of the Australian-US dollar exchange rate.
Local factors like competition also play a role.
Interestingly, cities follow different petrol price cycles, with prices in Sydney, Melbourne, Adelaide, and Perth decreasing or at the bottom of the cycle, while prices in Brisbane are increasing.
So, what’s next? Fill up your car now, and stay tuned for more updates on the petrol price saga!