News

Relief in sight for motorists trying to save on petrol

SAVE ON FUEL: Use the RACQ'S tips so you can fill your car up less.
SAVE ON FUEL: Use the RACQ'S tips so you can fill your car up less. Noel Thompson

PETROL retailers have been gouging large profits of 25 cents per litre or more from motorists as prices for crude oil plummeted to their lowest level in 11 years this week.

However, there is some Christmas holiday relief in sight, with prices set to drop across the Northern Rivers, but the profit margins of major retailers may limit the savings to motorists.

Brent crude oil prices fell to their lowest prices since July 2004 in London futures trading on Monday, and west Texas crude oil closed at $34.50 US a barrel.

An analysis by CommSec found Singapore fuel prices had fallen about 15 cents a litre since early October, but Australian wholesale prices were only down 12 cents.

Despite Australian wholesale prices falling 12 cents over that period, the retail pump price is less than 10 cents lower - even though Australia imports most of its fuel from Singapore refineries.

It's not just unleaded petrol users feeling the pinch at the bowser, with wholesale diesel prices also falling to an 11-year low of below $1 per litre, but motorists are still paying an average of $1.25 per litre.

NRMA spokesman Peter Khoury said prices would fall across the Northern Rivers but a lack of competition compared to cities meant falls wouldn't be as significant as the $1.10 per litre predicted in Sydney.

He said competition from independent retailers in Sydney caused greater fluctuations in price compared to the Northern Rivers.

"The average price in Lismore was $1.24 cents per litre on Monday and Casino was $1.16, making it cheaper than Sydney," he said.

"We would certainly expect the prices for other regional towns around the Northern Rivers to fall but I don't know if Casino has much room to drop.

"We know that the profit margins of the oil companies have been the highest on record, particularly in the three-month period ending September 30.

"We know the major retailers have been making 25 cents per litre or more profit on fuel."

Mr Khoury said the price drop for diesel wouldn't be as significant, despite the record low wholesale price.

"Diesel pricing structure is different to unleaded and other fuels and the demand for diesel in Australia isn't as high," he said.

"Because there is less demand there is less competition, so you are less inclined to see prices move the way they do with petrol."

The Australian Competition and Consumer Commission said a combination of factors caused fuel prices to rise and fall, including changes in international benchmark prices, the value of the Australian dollar, levels of competition in different areas and pricing decisions by wholesalers and retailers.

Topics:  commsec, lismore, petrol price




Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

THE EXPERT: Stop judging working mothers

SUPER MUMS: Being a working mums comes down to perfecting time management.

"WORKING for money is all right; so is working because you want to.”

OPINION: How to prepare your child for day care

Your kids will love childcare, but it may take some adjusting.

GETTING your child ready for day care is vital.

MUMS' TOP 5: 'Musts' to have on your childcare checklist

SOME FALL SHORT: Organisations that train childcare workers will be subjected to extra audits.

SENDING your child off to day care can be daunting and confusing.

Health and nutrition with kids - how do you balance it?

HOW important is health and nutrition in your household?

Smack or no smack - where do you stand?

THE debate is reignited - is smacking acceptable?

Technology and kids: Do you ever cut their wi-fi?

Check out our new video series featuring mums having a chat

Travel, affordability biggest issues for hospital patients

Our House Director Rebekka Battista says Lismore has great medical facilities but patients could benefit from bettertransport assistance.

The director of Our House discusses issues regional patients face.

Hogan could lose Page, say bookmakers

The Member for Page Kevin Hogan reckons the $3.50 bookies odds him holding his seat are looking pretty tasty.

Bookies have the ALP firming as favourite to win Page

Rail trail supporters call for backing from election candidates

Candidates for Page were asked for their views on a rail trail.

Northern Rivers Rail Trail "pleased" with support

Latest deals and offers

Carnifex Snippet 4

Carnifex are about to release new music with their sixth album. Photo Contributed

"Drown Me In Blood" from CA based death metal outfit CARNIFEX. Sixth studio album...

Carnifex Snippet 3

Carnifex are about to release new music with their sixth album. Photo Contributed

"Drown Me In Blood" from CA based death metal outfit CARNIFEX. Sixth studio album...

Carnifex Snippet 2

Carnifex are about to release new music with their sixth album. Photo Contributed

"Drown Me In Blood" from CA based death metal outfit CARNIFEX. Sixth studio album...

PROPERTY BOOM: Coast prices set to skyrocket

Like other areas in south-east Queensland, the Sunshine Coast is at the start of the upturn on the property clock.

Values predicted to rise 25-33%

DIY: How to build a backyard fire pit

DIY stars and Weekend magazine columnists Ayden and Jess Hogan.

Would you build this for your backyard?