Ways to beat the fuel price hike

According to the ACCC, many factors can influence the price of fuel in Australia, including global and local changes. Here are just a few:

Crude oil, petrol and diesel are bought and sold in their own markets. Australia’s regional market for petrol and diesel is Asia-Pacific, and the trading centre for this market is in Singapore. This means the Singapore price of petrol (MOGAS95 petrol) is the main pricing benchmark for petrol sold on our shores. Because crude oil is an internationally traded commodity, the price can fluctuate depending on changing demand and supply factors around the world. It can take around 2 weeks for changes in international benchmark prices to hit Australian domestic markets.

The international benchmark price for petroleum product markets is set in U.S dollars. This means the value of our dollar relative to the U.S dollar can impact the price we pay for fuel. However, this doesn’t necessarily mean that fuel will cost less if our dollar’s value increases. The benchmark price would need to stay the same or drop, and local factors would need to remain steady.

The Australian government imposes a flat sales tax on petrol and diesel, known as a fuel excise. The price is indexed and adjusted twice a year in line with inflation. Fuel is also subject to GST, which is set at a rate of 10%.

Business owners running a fuel outlet need to make enough money to cover their overhead costs, such as wages, rent, utilities, and other costs associated with their operations. This can all impact what you pay for at the pump.

In addition to fuel-check apps and websites, here are some other strategies to help your dollar go further:
 

• signing up to service-station reward programs
• making the most of supermarket fuel reward programs
• travelling with public transport for part of your journey or the full distance
• walking to local parks, sports, schools and supermarkets where practical
• taking turns carpooling with others to shared destinations.