Petrol price hikes are a good thing for retailers.

Sydney petrol retailers are already experiencing higher retail margins on petrol just in time for Christmas.

According to Commsec, the differential between wholesale and retail fuel prices in Australia’s largest city are approaching the highest levels on record Business Insider reported.

Commsec chief economist Craig James said: “The gross retail margin — before other costs are taken out — stands at 20.7 cents a litre, one of the highest levels recorded.”

“In Sydney today the terminal gate, or wholesale price, is 124.2 cents a litre. Meanwhile MotorMouth records the average retail or pump price of fuel at 144.9 cents a litre,” he said.

It was reported that “pump prices are generally well up” on what they were recently, following the end of the discounted price cycle.

Mr James said there was a gross retail margin of just two cents per litre in early December.

“The bottom line is that motorists must closely follow the discounting cycle otherwise filling up the car with petrol could end up costing an extra $10-12,” he said.

While the current margins are looking promising for retailers, the same can’t be said for consumers whom have already been warned about rising petrol prices over the Christmas and New Year period.

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