What determines the price of petrol? We’ve laid out the steps below that deliver fuel to the forecourt – from oil by the barrel to petrol by the litre – and the costs associated with each to demonstrate how they add up to a cost of, for example, 180 cents per litre.
Image: Step-by-step factors that contribute to the price of petrol
|
Factor |
Description |
Cost added (cents per litre) |
|---|---|---|
|
1.
Crude oil |
We talk about the cost of oil per barrel, but this is how much Tapis costs per litre. | 93.7 |
|
2. Refining (MOGAS) |
Oil is turned into a petrol for our market at refineries in Singapore. |
11.7 |
|
3. Transportation |
Shipping and terminal fees plus wholesale profit. |
12.5 |
|
4. Fuel excise |
The Federal Government's levy on petrol. This price has been halved from 44.2 cents to 22.1 cents per litre as of 12:01am 30 March 2022 to 11:59pm 28 September 2022. |
22.1 |
|
5. Wholesale GST |
The first of two applications of GST on top of fuel excise - a 'tax on a tax'. |
14 |
|
6. Retail mark-up |
This covers transport, wage, rent, bills, admin, marketing and retail profit. |
19.1 |
|
7. GST on retail |
The second GST levy, paid by the consumer at the bowser. | 1.9 |
|
|
Total petrol price: | 175 cents per litre |
