Petrol price pain continues for motorists in March quarter

RACQ’s latest quarterly Fuel Price Report found in Brisbane, the average price for ULP in March was 187 cents per litre (cpl), which was 10 cents higher than the average price in December. However, over the entire March quarter, prices only rose by 1.6cpl.

The Club’s Principal Economic and Affordability Specialist Dr Ian Jeffreys said several factors were to blame.

“Average petrol prices in the March quarter increased slightly, even though crude oil prices were lower on average,” Dr Jeffreys said.

“Higher retail prices were caused by the timing of the price cycle in south east Queensland and an increase in fuel excise in line with CPI increases in the second half of 2022.”

In March, the cheapest unleaded in the state could be found in the Whitsundays and Bundaberg, at an average of 171.9cpl and 173.1cpl respectively.

Longreach recorded the most expensive, with an average of 207.5cpl.

Dr Jeffreys said there had finally been a slight reprieve for diesel drivers in 2023, with averages falling below $2 a litre for the first time since April 2022.

“Diesel averages were around 20 cents a litre cheaper in March, compared to December which is great news for motorists driving a diesel car,” Dr Jeffreys explained.

“The dip in diesel prices was due to the wholesale price of diesel fuel dropping gradually as world oil prices declined. However retail margins do remain high so we think fuel companies could be doing more to lower the price they’re charging consumers.”

For diesel, Miles (188.9cpl) and Gympie (191.2cpl) were the cheapest locations to buy, while Longreach was the most expensive at 215.3cpl.

RACQ expects ULP prices to rise again in the June quarter, as the recent increase in oil prices could add as much as five cents per litre to average prices.

This follows OPEC’s announcement to reduce global oil production by another 1.16 million barrels from May.

To read the full report click here.