Diesel Drivers Ripped Off As Petrol Prices Plunge: RACV Photo:

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Trevor Collett | Jan, 30 2015 | 8 Comments

Victoria’s RACV believes diesel drivers are being ripped off as prices for petroleum products continue to slide.

In Sydney and Melbourne, unleaded petrol and E10 ethanol-blended fuel at some service stations has dropped below $1.00 per litre - prices not seen for around a decade.

But diesel has been slow to follow suit, despite price boards displaying the lowest per litre rates in these capital cities since 2009.

RACV’s Michael Case said diesel prices in Australia have not fallen in line with world markets, and that local diesel owners are being ripped off.

“The current wholesale price for diesel is 106.2 cents per litre and the price is continuing to drop,” Mr Case said.

“Melbourne drivers of diesel vehicles are currently paying on average 127.3 cents per litre and rural diesel drivers are paying an average of 128.8 cents per litre. These prices are more than 20 cents higher than the wholesale price.”

Mr Case said the sizable gap between the wholesale price and the bowser price cannot be justified, and that diesel owners in rural areas in particular were being treated unfairly.

The RACV believes the pump price for diesel should be at least 10 cents per litre cheaper in the current market, which would save a Toyota Prado owner $15 on a 150 litre purchase and a Volkswagen Tiguan driver $6.40 on a 64 litre purchase.

“Most business groups operate diesel vehicles and therefore high diesel prices mean increased transport costs which are passed on to consumers through increased prices for food and other day-to-day goods,” Mr Case said.

“It is possible that motorists using diesel are subsidising petrol users because retailers may be keeping their diesel price high to recoup lost profits due to the low price for petrol.”

The RACV pointed to the increasing popularity of diesel, which made up 26 percent of private new car sales in 2014 compared to just seven percent a decade ago.

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