Factors that set the price of fuel

Diesel at petrol bowser

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.

 fuel prices petrol cost 

 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

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