Wednesday 28 September 2022: The NRMA is calling on oil companies to cut fuel prices as the average gross margin in Sydney blows out to 42 cents per litre despite plummeting global oil prices.
The current average price for fuel regular unleaded in Sydney has risen to over 190 cents per litre. The average is more than 10 cents higher than the NRMA expected the high point of the cycle to reach.
These are the highest gross margins since May 2020 with prices surging across Australian capital cities and defying global trends of falling prices.
When the cut to the fuel excise tax was introduced in March, it took six to seven days to be passed on to consumers in Sydney, and between two to three weeks across regional NSW.
Peter Khoury from the NRMA said oil prices had plummeted below $100 US per barrel, almost on par with pre-pandemic pricing and wholesale prices also dropped by more than 50c per litre since June.
“Despite falling global prices and the full fuel excise tax not yet reinstated, prices in Sydney are approaching $2 per litre meaning motorists are paying much more for fuel than they should be in the lead up to the October long weekend, Mr Khoury said.
“Australians know that the excise cut to the wholesale price will be reinstated on Thursday however, prices today are already unacceptably high and we need to see a correction immediately.”
While oil prices have fallen since June by as much as $60 US per barrel due to concerns about the strength of the global economic, the weaker Australian dollar puts upward pressure on petrol prices. The reintroduction of the excise has not happened yet and prices are already too high. As we head into the long weekend, the NRMA is concerned about the 42c per litre gap between the wholesale and retail price.
“Australians are already facing cost of living pressures. There is no restraint being shown by the oil companies today, so it is critical the excise isn’t passed on to customers immediately,” Mr Khoury said.
“Had the oil companies been consistent, prices should have fallen off the high point and that fall needs to start now. Let’s hope More restraint is shown after the reintroduction of the excise than what we’ve seen this week.”
