What’s the deal with high diesel prices?
With unleaded petrol prices dropping to record lows, we know many diesel drivers are questioning why they haven’t seen the same falls.
Two factors are leading to the higher price of diesel.
Firstly, in some parts of Queensland, we’re seeing margins on diesel about twice as high as petrol.
Fuel companies have used recent falls in the oil price to bolster margins rather than passing those savings on to motorists.
Secondly, the wholesale price of diesel is currently substantially higher than petrol. Demand for petrol has collapsed in Australia and around the world due to COVID-19, however demand for diesel has stayed relatively high — it’s largely used by industry, with trucks still running and mines still producing.
Supplies of diesel are also relatively low, with a typical refinery in Australia producing about twice as much petrol as it does diesel.
This imbalance between supply and demand has pushed up the diesel wholesale price.
While there are many factors diesel drivers can’t control, what they can control is where they fill up. Make sure you’re only shopping at the cheapest site, using apps like RACQ Fair Fuel Finder to locate the best deal near you.
By choosing to shop at the servos offering the lowest price, you’ll not only save yourself money but also encourage the ones ripping us off to compete for your business, and hopefully we’ll see those diesel prices fall.