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As fuel prices continue to rise around the country, diesel was once again “significantly” more expensive than petrol over the December 2022 quarter, according to fresh data from the ACCC.
According to the consumer watchdog’s latest quarterly petrol monitoring report, average petrol prices from the five largest cities in Australia sat at 182.7 cents per litre in the December quarter — an increase of 5 cents per litre from the September quarter.
Diesel prices averaged 222.9 cents per litre, marking a 40-cent-per-litre increase on the quarter before.
The ACCC report said the ongoing war in Ukraine was a catalyst for the higher diesel prices around the world.
Reduced supplies from Russia and refinery strikes in France contributed to the higher diesel prices.
High demand for heating in the northern hemisphere over its winter also spurred the higher diesel prices.
ACCC Chair Gina Cass-Gottlieb said alongside production struggles, Australian fuel prices were influenced by global crude oil prices and the AUD–USD exchange rate.
“The small increase in average retail petrol prices in the major cities reflects the increase in taxes following the restoration of the full rate of excise from 29 September 2022, offset by a decline in international petrol prices,” Ms Cass-Gottlieb said.
“Russia’s invasion of Ukraine led to international diesel prices moving higher than petrol in early 2022. While international refined fuel prices reduced in the December quarter, the difference between the diesel and petrol benchmarks continued.”
In March last year, the Federal Government halved its petrol and diesel excise to ease pressure at the pumps, but this excise cut ended in September.
Crude oil prices have, however, decreased in the December quarter amid concerns over a potential global recession due to rising interest rates and lower demand.
“Despite lower international prices, the influence of the fully restored fuel excise and a lower AUD-USD exchange rate meant overall that average retail petrol prices across the largest cities were slightly higher than in the previous quarter,” Ms Cass-Gottlieb said.
Among the five largest capitals, the highest average petrol prices were in Melbourne at 185.2 cents per litre, with the lowest in Adelaide at 178.9 cents per litre.
In Canberra and Darwin, average prices decreased by 7.4 and 7.6 cents per litre, respectively, while prices in Hobart increased by 2.8 cents per litre.
Average petrol prices across 190 regional locations monitored by the ACCC increased a slight 0.1 cents per litre to 187 cents per litre.
In December of last year, the National Treasurer issued new directions to the ACCC to monitor the prices, costs and profits relating to the supply of petroleum products throughout Australia.
The ACCC will produce quarterly reports to run for the next three years for the purpose of keeping the public informed.
This is the ACCC’s first quarterly petrol monitoring report under the new direction.
