Retail diesel prices dropped “significantly” in the March quarter while petrol prices remained broadly stable, according to the ACCC’s latest petrol monitoring report.
Quarterly average retail diesel prices in Australia’s five largest cities fell by 10% between the March quarter and the previous quarter (down by 23.2 cents per litre (cpl) to 199.7 cpl). In contrast, quarterly average retail petrol prices fell marginally by 0.5 cpl to 182.2 cpl.
“As a result, the difference between diesel and petrol prices was significantly lower in the March quarter 2023 (17.5 cpl) than it had been in the previous quarter (40.2 cpl) and has since narrowed further,” says the ACCC.
“After the Russian invasion of Ukraine in February 2022, the international benchmark price for refined diesel (Singapore Gasoil 10 ppm), rose significantly above the benchmark for refined petrol (Mogas 95) as global supply of refined diesel decreased.
“Increased Chinese diesel exports, a rise in the US’ diesel inventories and reduced European demand due to a warmer than usual winter helped drive the reduction in Gasoil 10 ppm prices in the March quarter.”
ACCC Commissioner Anna Brakey says the ACCC are “pleased that developments in international diesel markets have led to a decrease in the retail price of diesel, a crucial input to many parts of the economy”.
Retail petrol prices
Ms Brakey says retail petrol prices in the five largest cities were less volatile in the March quarter, “following significant volatility in 2022 due to fluctuating international crude oil and refined petrol prices, and the temporary cut, and subsequent restoration, in fuel excise”.
While quarterly average retail petrol prices across the five largest cities fell slightly by 0.5 cpl to 182.2 cpl, they fell by 3.2 cpl in Perth (to 176.6 cpl) and 0.9 cpl in Melbourne (to 184.3 cpl) and rose by 1.5 cpl in Brisbane (to 186.4 cpl). Prices in Sydney rose slightly (up 0.5 cpl) while Adelaide prices recorded a slight drop (down by 0.3 cpl) in the quarter.
Retail petrol prices also decreased in the smaller capital cities. On average, petrol prices in Hobart were 4.2 cpl cheaper than in the December quarter, while Darwin prices dropped by 3.2 cpl and Canberra prices were down by 2.0 cpl.
Retail petrol prices in over 190 regional locations in the March quarter averaged 183.1 cpl. The gap between average prices in regional locations and the average of the five largest cities narrowed by 3.4 cpl to only 0.9 cpl. In regional areas in NSW, Victoria and Queensland, average petrol prices were below prices in the respective capitals.
Gross indicative retail differences in the five largest cities declined by 0.5 cpl to 11.4 cpl in the quarter and were 12.2 cpl below pre-pandemic levels over the year to March 2023.
“Gross indicative retail differences are the difference between average retail petrol prices and average wholesale prices, and broadly indicate gross retail margins,” explains the ACCC. “They don’t account for retail operating costs and shouldn’t be interpreted as actual retail profits.”
In real (inflation adjusted) terms, 12-month average gross indicative retail differences from March 2017 to December 2019 were between 13.6 cpl and 14.6 cpl.
