Diesel prices are hitting record highs, with Sunshine Coast motorists paying well over $2.33 a litre.
But the reason we are paying more at the bowser for diesel fuel is not what most people assume.
RACQ spokesperson Lauren Cooney said the record high prices were due to international factors, rather than overcharging by fuel companies.
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“There’s a misconception that fuel companies are overcharging motorists on diesel, but in fact retail margins are reasonably low,” Ms Cooney explained.
“The current average retail margin on diesel sold in Brisbane is 9.5 cents per litre, usually this sits at around 12 cents per litre.”
An RACQ spokesperson said the average diesel price for Maroochydore/Caloundra has hit a record high at 237.2 cents per litre.
This has exceeded the previous record price for Maroochydore/Caloundra which was 236.8 cents per litre, set on July 1.
The average price for diesel in the Sunshine Coast is currently 235.8 – this is yet to break the current record high of 236.1 which was also set on July 1.
Ms Cooney said exceptionally high diesel prices are being experienced right across the world.
“Russia is a major manufacturer and distributor of diesel, especially to the European market,” she said.
“With the ongoing war in Ukraine and sanctions against Russian exports, the global supply of diesel has fallen significantly, causing wholesale prices to rise and remain incredibly high.”
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Ms Cooney further explained the demand for diesel is much higher than the demand for unleaded fuel.
“Diesel is an industry fuel and is used far more than unleaded, for example in Queensland we consume more than twice as much diesel as we do petrol,” she said.
“The production cost of diesel is similar to unleaded and both products are processed similarly.”
The RACQ explained it was simple supply and demand factors that are pushing up prices, rather than the productions costs.
“The current average wholesale price of diesel in Brisbane is 226 cents per litre, which is about 50 cents higher than the unleaded wholesale price of 175 cents per litre.
“In normal times the local wholesale prices and international benchmark prices for unleaded and diesel would be very similar, usually no more than a few cents difference.
“With retail margins currently low for diesel, the bad news is prices are likely to continue to creep a little higher.”
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