What affects fuel prices?
Fuel prices can go up and down due to a combination of factors:
- changes in international benchmark prices
- the value of the Australian dollar relative to the US dollar
- levels of competition in different areas
- pricing decisions by wholesalers and retailers.
International benchmark prices
For petrol, diesel and automotive LPG the largest component of the price you pay is represented by the international benchmark price.
The current benchmark prices for fuels sold in Australia are:
- Regular Unleaded Petrol – Singapore Mogas 95 Unleaded
- Diesel – Singapore Gasoil 10 parts per million sulphur
- LPG – Saudi Contract prices for butane and propane
Changes in international prices can take around two weeks to work their way through the supply chain in Australian cities and longer in regional areas.
Other costs and taxes
All fuel prices include GST of 10 per cent of the total price. For petrol and diesel you also pay the fixed Federal Government Excise of 38 cents per litre. LPG currently has a lower rate of excise than petrol and diesel. The excise on LPG is currently 5cpl and will rise by 2.5 cpl each year until it reaches 12.5 cpl in 2015.
For petrol and diesel there is also an additional cost, which reflects the higher quality of Australian fuel standards.