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Fuel Pricing
There are three main components of every dollar you spend on petrol:
Taxes and Duties – 30 to 35%
Cost of Raw Product – 50 to 60%
Other Costs and Margins – 5 to 10%
When you add government taxes, including an excise tax (a tax on the volume of fuel) and the goods and services tax (GST), to the cost of raw materials you have about 90 percent of the price of petrol at the pump. The rest is the oil company, distributor and service station dealers’ share, which must cover:
The cost of running oil terminals
Costs involved in delivering petrol to service stations
Administration and marketing costs
The costs involved in running the service station, such as labour, rent and electricity.
The cost of the raw materials is determined by the import parity price, which is the cost of importing, including freight and wharfage, the finished product to Australia.
So when prices fluctuate, it’s because the cost of imported fuel, known as the ‘terminal gate price’ has fluctuated.
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