When drivers pull up to the petrol pump, they might wonder why prices differ between petrol stations, with some offering discounted rates while others consistently have high prices. Exploring the factors that determine petrol prices reveals a complex mix of regional markets, benchmark prices, and government taxes. According to the Australian Institute of Petroleum, fuel prices globally are impacted by regional markets, benchmark prices such as Singapore's MOGAS95 Petrol price, and government taxes in those markets.
the purchase cost of petrol, shipping expenses, and government taxes. These prices can fluctuate depending on factors such as proximity to refineries or import terminals, affecting the transportation costs involved.
Various elements influence what motorists pay for petrol, including the fluctuation of oil prices, the strength of the Australian dollar, and the wholesale price that retailers pay for fuel. While petrol prices across Australia have seen some stability recently, the national average price for unleaded petrol stands at $1.69 per litre. Understanding fuel pricing cycles in different cities can also help consumers make informed decisions on when to fill up their tanks, as pricing patterns can vary between cities and even within the same city.
In a competitive petrol industry, individual retailers have the flexibility to set prices, leading to varying rates between petrol stations. The presence of competition in an area can drive petrol stations to keep prices low to attract customers, whereas regions with less competition may experience higher prices. While the myth of "Cheap Tuesdays" for cheaper petrol may no longer hold much truth due to retailers pricing independently, consumers can still save money at the pump by shopping around and using apps to locate the cheapest fuel prices in their area. Additional ways to save on petrol include taking advantage of fuel deals through apps, supermarket incentives, and discounts offered by roadside assistance programs and energy retailers.