Premium petrol too costly

21 April 2009

The RAC has revealed that petrol companies have skimmed more than $5million from higher prices for premium unleaded petrol.

In January 2008, the price difference between ordinary unleaded petrol and premium unleaded petrol (95Octane) was around 6 cents a litre.

Throughout 2008, petrol companies slowly edged up that differential. The price difference now stands at around 9 cents a litre.

RAC Head of Member Advocacy Matt Brown said that even on conservative estimates, petrol companies had pocketed millions of dollars in additional profits.

“We’ve had a constant stream of complaints from RAC members in recent weeks as the margin difference peaked at just over 9 cents a litre.

“By our calculations, that additional three cents a litre buffer is potentially raking in more than $650,000 in additional profits for the petrol companies each month.

“Looking at the price differential since January 2008, we believe petrol companies pocketed around $4.5million over 2008 alone from this rort.

“There is no justification for this whatsoever.

“With most motorists focussing on the price of unleaded petrol, it looks like petrol companies have seen the opportunity to allow the margins on premium unleaded to blow out.”

Mr Brown said the use of premium unleaded petrol was steadily increasing leaving Western Australian motorists vulnerable to the petrol companies’ tactics.

“Many of the new European cars on the market are designed for the use of 95Octane fuel,” Mr Brown said. 

“This means that motorists will only get maximum fuel efficiency from their cars if they use premium unleaded petrol.

“The petrol companies have been taking advantage of these motorists in a cynical and manipulative manner.”

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