Over the last few weeks motorists have saved at the bowser with unleaded fuel prices hitting a six year low due to the fall in crude and refined oil prices. Despite this, Diesel fuel pricing has not changed.
PEOPLE POWER: Motorists are encouraged to share cheaper fuel prices on social media.
The price of diesel is determined by international market forces (independent of market forces associated with petrol). At present there is strong international competition and an over-supply of petrol within the international market (due to the US producing more off their own petrol and relying less on imported oil from the Middle East).
This is a major factor in petrol prices being as low as they are. However this is not reflected with diesel as there is not the same level of competition internationally.
Pricing at the Bowser
Only 25 percent of diesel used in Australia is sold through retail outlets – with most diesel sold to bulk commercial/industrial customers i.e. mining and transport companies.
There is very little diesel sold to private customers (as opposed to petrol), so there is no need for retailers to provide the same level of discounting for diesel products, as most of the market share is with commercial/industrial customers – not motorists. Therefore, retail diesel prices, unlike petrol prices are not subject to aggressive price discounting. At service stations, retailers concentrate on petrol/LPG discounting to drive overall fuel sales.
Motorists are encouraged use our online Petrol Watch price guide or share the cheapest fuel prices in their areas on our NRMA Facebook Page.
Have you noticed any changes to diesel fuel prices in your area? What’s been the cheapest price?
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