Diesel prices driving local pain

A 33 cents a litre diesel price premium at Kincumber on Tuesday August 9, 2022.

Diesel prices on the Central Coast remain high despite large decreases in unleaded and crude oil prices, with the price difference between e-10 and diesel around 25-35 cents per litre.

The unprecedented price difference represents about $25 per tank premium for diesel users compared to e-10 users.

The Central Coast, with its high proportion of tradespeople and long commuting routes, is particularly susceptible to the effects of high diesel prices.

It is unclear why diesel prices have not come down in line with international prices, but some commuters are suggesting retailers have increased their margins on diesel as the wholesale diesel prices have come down.

The Australian Institute of Petroleum’s report on diesel prices in August shows the significant difference in retail margins for diesel that has opened up since March this year.

Australian Institute of Petroleum Weekly Diesel Prices Report – Week ending 7 August 2022

To compound the problem independent fuel price monitoring service MotorMouth showed a big price difference between city and regional areas.

The seven day rolling average for diesel on the Central Coast was 216.3 cents/litre on Tuesday, August 8 – the equivalent average price for the Sydney market was 205.6 cents/litre.

The highest price for diesel on the Central Coast on Tuesday was Coles Express at Woy Woy and Umina, while the lowest price was 205.6 cents per litre at Metro in Wyong.

CCN has reached out to the competition regulator, the ACCC, who said they do not set fuel prices, stating that fuel prices are determined by the market.

The ACCC’s primary role is to prevent anti-competitive conduct, such as price fixing or collusion, to protect consumers.

In March this year, the previous government temporarily reduced the federal fuel excise by 22.1 cents a litre to counter the rapidly rising cost of fuel following Russia’s aggression in Ukraine.

This excise is due to return to normal in September, which will likely flow through to consumers shortly after. If the full 40c is applied by the retailer to the current diesel prices we could see diesel prices exceed $2.30 per litre.

Diesel cars and trucks have become popular choices for many drivers over the last decade as manufacturers offered many models not previously offered in Australia and due to better fuel efficiency compared to petrol powered vehicles – it appears these advantages have been eroded by higher relative retail diesel prices.

David Abrahams

Check live fuel prices at CCN’s dedicated web ap for the Central Coast

5 Comments on "Diesel prices driving local pain"

  1. Hi fuel excise reduction was 20c not 40c We got 50% excise reduction Do a fact check

    • Thank you Ken, corrected. FAct checked with treasury, and was in fact a 22.1 cent reduction from 44.2 cents.

  2. Stephen Thomas | August 10, 2022 at 7:10 pm |

    I’m about to buy a new used car. I’ve had diesel but next car is to be petrol. Diesel prices have definitely contributed to the change…. especially after you take into account the servicing costs of diesel.

  3. Donna britton | August 10, 2022 at 8:07 pm |

    We just filled up last night and it cost $139 for 62.08 litres

  4. Peter Fryar | August 13, 2022 at 7:42 am |

    Shell Woy Woy and Umina have consistently priced fuel at excessive prices from my observations over 30 years living in the area. 7 Eleven and the other service stations on the Peninsula are no different. I refuse to but fuel for my car at any service station on the Peninsula.

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