Fuel margins have increased by 25 per cent in Perth’s new fortnightly fuel cycle, according to new analysis by RAC.
New data shows the average margin has increased from 11.5 to 14.4 cents a litre* — or 25 per cent — since Perth’s petrol price cycle moved from weekly to fortnightly.
RAC General Manager External Relations Will Golsby said the increase comes at the worst possible time for motorists.
“At a time when household budgets are stretched for Christmas and petrol prices are creeping closer to $2 a litre, we find out fuel retailers are actually increasing their margins,” Mr Golsby said.
“While a three-cent increase in margins might sound small, for every 1 cent petrol prices rise, an additional $17.7 million goes from motorists' pockets into the revenue streams of petrol companies.
“The recent shift from a weekly to fortnightly petrol price cycle has never been fully explained.
“Clearly the question needs to be asked – is this another way to boost bottom lines at the expense of motorists?”
Perth fuel prices recently hit record highs, with some retailers charging up to 196.9 cents a litre on the new hike day in the cycle — every second Wednesday.
“Fuel is a constant and usually unavoidable expense for Western Australian households and it’s becoming increasingly expensive just to move around our State,” Mr Golsby said.
“In recent weeks we’ve seen wholesale pricing starting to drop, so now is the time for fuel companies to start passing these reductions onto prices at the bowser as we head into Christmas and 2022.”
Fuel margins are the difference between the wholesale price and the price at the bowser.
RAC Media Contact: Caitlin Barr, 0401 703 719 or firstname.lastname@example.org
*Calculations: Comparison of average margins for ULP (91) between 6 October – 14 December and the six weeks prior.