• Jason Regan

RAA calls for fuel price savings to be passed on at the pump

RAA is calling for falling wholesale fuel prices to be immediately passed on to motorists at bowsers across South Australia.

The gap between wholesale fuel costs and pump prices has doubled in regional South Australia, latest RAA figures show.

This month wholesale ULP prices have fallen by 36.9cl - from 125.9c/l to 89c/l - but average pump prices in regional SA have dropped by 16.7c/l – from 143.9c/l to 127.2c/l.

This has seen the gap between the average pump price and wholesale price in regional SA jump from 18c/l to 38.2c/l.

RAA fuel expert Mark Borlace said wholesale price savings must be passed on to country motorists as the economic impact of the Covid-19 crisis worsens.

“Wholesale price cuts do take longer to pass onto country bowsers due to lower sales volumes compared to Adelaide, however the current rate of price reduction is unwarranted,’’ Mr Borlace said.

“Take Whyalla for example, where prices this month have dropped around 10c/l on average, although wholesale costs have been slashed by more than 38c/l in the same time.

“Adelaide motorist have reaped massive savings at the bowser due to falling oil prices, and RAA believes significant price cuts should also be enjoyed by regional motorists.’’

RAA figures show petrol pump prices falls have varied across the state. In contrast to Whyalla, Port Lincoln average prices have fallen by almost 23c/l - from 148.5c/l to 125.6c/l – this month.

Mr Borlace said diesel pump prices had also failed to fall as far as they should, both in Adelaide and regional centres.

This month wholesale diesel prices have dropped around 19c/l, while the average pump price in Adelaide and regional SA has dropped by around 12c/l

Mr Borlace reminded retailers that the national consumer watchdog, the ACCC, last week issued a warning it would name and shame individual retailers which were not passing on falling wholesale costs.

“We have raised our concerns with the ACCC about the slow rate at which fuel cost savings are being passed on to SA motorists,’’ Mr Borlace said.

“This is why we are encouraging retailers to pass on savings as soon as possible.’’

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