Why premium fuel profit blows out at bowser

AAP
April 05, 2012

AN inquiry has been launched into the price of petrol in NSW after claims that motorists may be paying over the odds for premium unleaded.

The NSW Government has asked Fair Trading Commissioner Rod Stowe to examine the price of E10 ethanol blend fuel and octane 95 premium unleaded.

Fair Trading Minister Anthony Roberts said the wholesale price of the two fuels is two cents per litre different.

But at the bowser, premium unleaded is about 11.5 cents per litre more expensive, he said.

“We need to understand what factors are behind an over 500 per cent blowout in the price gap between the two products as it moves from wholesale to retail,” Mr Roberts said.

It comes after the NRMA analysed the price of the two fuels and asked the state’s Independent Pricing and Regulatory Tribunal (IPART) to conduct its own investigation.

Commissioner Stowe’s report will be sent to the Australian Competition and Consumer Commission (ACCC).

“If it is found that the price gap between E10 and premium unleaded fuel is not justified, or there is evidence of so-called price gouging, the NSW Government and community will be expecting the Federal Government to take decisive action to address the issue,” Mr Roberts added.