Why is diesel so expensive?
Retailers are charging 20c per litre more than they should, fuel watchers say
By Nicholas McElroy
Australians are paying about 20 cents a litre more for diesel than they should be, consumer advocates say.
And they say there doesn’t seem to be a good reason why.
Federal Treasurer Jim Chalmers says Australians are “absolutely filthy” about the higher fuel prices.
While prices have decreased, experts say diesel prices haven’t fallen enough.
But retailers say there has always been a lag between a drop in oil prices being seen at the pump.
Even if you don’t have a diesel vehicle, you’re probably impacted by diesel prices.
That’s because it’s the fuel of choice for industry — transport, agriculture, shipping and mining — which means there are flow-on effects for the economy.
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No one seems to mention that during the 80s Hawke and Keating did a deal with the oil companies to produce ULP because up until then it was all leaded petrol, the reason given was that to produce an equivalent amount of ULP it would take almost twice the amount of oil to produce. The price difference between diesel and petrol was then adjusted to supplement the cost to the oil companies, in other words every litre of diesel sold subsidises the cost of ULP. This deal has appeared as an open ended agreement and regardless of the development of new technologies in manufacture is the real reason why diesel prices are double what you would pay in Singapore. Multi national companies profit again from poor decisions by government.