RACQ’s June Quarterly Fuel Price Report revealed while Brent Crude Oil fell by almost US$12 per barrel (AU$15 per barrel), the average price for regular unleaded petrol (ULP) increased in Brisbane from 186.4 cents per litre (cpl) to 187.7cpl.

RACQ’s Principal Economic and Affordability Specialist Dr Ian Jeffreys said the increase was driven by higher-than-expected retail margins*.

“When we determine a ‘fair’ price for fuel, we look at what stations have charged in the past. Historically retail margins for ULP have sat at 10cpl and for diesel they’ve sat at 12cpl,” Dr Jeffreys said.

“If fuel stations were charging a fair price, the average for ULP in Brisbane should have been 181.3cpl, that’s 6.4cpl less than what was charged.

“While 6.4 cents doesn’t sound like a lot, when you add it up over a year of average fuel consumption, the saving to motorists would be more than $80.

“Figures for Gold Coast motorists are also alarming. A fair price for ULP there would have been 182.7cpl. Instead, motorists paid an average of 186.9cpl, which adds up to an extra $53 over a year.

“At a time when cost-of-living pressures are impacting so many of us, it’s disappointing to see fuel companies not pass on these savings and instead use the drop in global oil prices to bolster their bottom line.”

Dr Jeffreys also pointed out that diesel retail margins were consistently high over the June quarter.

“While we did see a large decrease in overall diesel prices in the June quarter, the retail margins remained unexpectedly high,” he said.

“The average price for diesel in Brisbane was 190.8cpl, when a fair price would have been 182.8cpl. That’s an extra $102 over a year.

“We’re urging fuel companies to do the right thing and lower prices to reflect the drop in oil prices.”

Read RACQ’s full June quarter 2023 Fuel Price Report here.

*A retail margin is the amount fuel stations charge motorists on top of the wholesale fuel price.