Global oil prices have fallen, so why is it still so expensive at the pump?
Drivers could immediately see fuel costs dropping below $2 per liter, but diesel remains high despite falling prices for the crude oil used to produce both. Analysis from FuelTrac shows that there is a growing gap between wholesale prices in Singapore and what you pay in retail. Specifically for diesel that means retailers are getting more per liter. “The longer they hold their retail pump prices, as Singapore and wholesale prices fall, they increase their retail profit margins,” said Geoff Trotter, general manager of FuelTrac. The line shows the relationship between retail margin – the amount a retailer earns – for unleaded gasoline (blue) and diesel (yellow) sold in Australia, above the ‘terminal gate price’ or wholesale cost. ( provided ) Most of the fuel pumped in Australia comes from Singapore and the island’s terminal gate prices – wholesale fees – affect what you pay as a consumer when sold at service stations here. But the margin between Singapor...