International refined-fuel prices
Pump prices in Australia respond to international prices for refined petrol and diesel, not crude oil alone. The timing and size of a retail change depend on supply, contracts and replacement costs.
Exchange rates
Fuel traded in US dollars becomes more expensive locally when the local currency weakens, even if the US-dollar benchmark is unchanged.
Wholesale terminal pricing and tax
The terminal gate price is a wholesale benchmark for fuel collected at the terminal. In Australia, published AIP TGP figures include fuel excise and GST but exclude later transport and retail operating costs.
Transport and station operating costs
Freight from the terminal, rent, wages, payment costs and the cost of running a service station sit between the wholesale benchmark and the bowser price.
Retail price cycles
Petrol prices in several capital cities rise sharply and then discount over a variable period. The current chart is more useful than a fixed cheapest-weekday rule.
Local competition
Nearby stations can charge different prices because brands and independent operators respond to competitors, traffic and local demand at different times.
Worked example
Do not treat the retail–TGP gap as profit
This hypothetical example explains how to read two differently defined figures.
- Published wholesale benchmark
- 180 c/L
- Retail station price
- 195 c/L
Calculation
195 c/L − 180 c/L = 15 c/L gap
The 15 c/L result is a gap between two prices, not the retailer’s profit.
