The Royal Automobile Club of Queensland (RACQ) has called on the state government to consider options to limit peak and average fuel price increases.
The call to government comes after unleaded petrol prices jumped from a low of 179.9 cpl to 229.9 cpl at over 16 per cent of sites across Brisbane, which, at that price, indicative retail margins are 56 cpl.
Dr Ian Jeffreys, Principal Economic and Affordability Specialist at RACQ, said retail margins were significantly higher than what they should be.
“Global oil prices have decreased, so charging 229.9cpl for unleaded, with a retail margin of 56cpl, is unacceptable and unjustified.
“At the beginning of 2023, retail margins during the price hike were 36cpl. But in recent price cycles, retail margins were hitting close to 50cpl and now this hike is even higher.
“Given the usual pattern of previous price cycles and margins, a more palatable high price would not exceed 210cpl.”
Dr Jeffreys is now calling on the state government to consider options to limit peak and average fuel price increases.
“After considering various regulatory approaches, our preferred option is to set a maximum amount by which retailers could raise prices on one day, such as five cents per litre plus any change in the wholesale price.
“This would bring an end to the sudden and dramatic spikes we currently see in the southeast, allowing motorists to plan purchases around a more measured increase in prices.”
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