Pressure mounts on retailers to cut fuel prices

‘We have observed a significant jump in the wholesaler margin, and we are publicly seeking an explanation for that.’

THE Automobile Association and the Road User Forum have stepped up the pressure on fuel retailers, calling on them to cut pump prices for the eighth time in a row.

The move comes as signs of slower growth in China and a glut of stockpiled fuel in the United States sent shivers through global energy markets, pushing oil prices to their lowest level in nine months.

Pump costs have also been tumbling as fuel refineries around the world come back on stream after annual maintenance outages, boosting supplies of refined fuel products.

AA spokesman Mark Stockdale said yesterday that although petrol prices had dropped by 16 cents a litre since mid February, the recent slide in commodity prices meant there was at least another Ken Shirley Head of the Road Transportation Forum 3c saving that BP, Caltex, Mobil and Z Energy could pass on.

‘‘The AA’s monitoring of commodity prices shows that since the last retail price increase in mid February, the imported cost of petrol has fallen nearly 19 cents per litre, and diesel 16 cents,’’ he said. ‘‘That means fuel companies have not passed all motorists.’’

If prices moved in line with the AA’s recommendation, that would translate into a $1.50 saving on a 50-litre tank of petrol, or a chocolate bar every time motorists filled up.

Ken Shirley, head of the Road Transport Forum, said his organisation was growing increasingly concerned about fuel retailers fattening their margin on diesel in the past few months.

The importer margin was sitting at 33.1c a litre, notably higher than the three-year average of 23.3c a litre.

‘‘We recognise wholesalers have to have a return, but we have observed a significant jump in the wholesaler margin, and we are publicly seeking an explanation for that.’’

At the current level, diesel prices are sitting at their lowest level since July last year.

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