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RAA is calling for significant savings in wholesale diesel costs to be passed on at the pump.
While the average Adelaide wholesale cost of diesel has fallen 41.3c per litre in the past month, Adelaide diesel pump prices have decreased by just 20.9c per litre on average in the same period.
RAA fuel expert Mark Borlace said these wholesale diesel price cuts – caused by a recent fall in crude oil costs – must also flow through to pumps across the state.
He said the cost of diesel at the pump should be around 14c per litre cheaper than motorists are currently paying.
“While there is a time lag – up to a week in regional SA – for wholesale costs to pass through to the pump, motorist should be enjoying cheaper prices now than they are, given the recent large drop in wholesale costs in the past four weeks,’’ he said.
Mr Borlace said Adelaide petrol prices had plummeted from record peaks in the past month – from almost 240c per litre to below 160c per litre – because of a corresponding fall in ULP wholesale costs and operation of the petrol price cycle.
“Unlike petrol, however, there isn’t a large enough demand from motorists to drive the same fluctuating price cycle as experienced with petrol,’’ Mr Borlace said.
“But even without a pricing cycle, the cost of diesel at the pump should be about 14c per litre cheaper than motorists are now paying in both Adelaide and regional SA.’’
Mr Borlace said diesel vehicles were particularly popular among regional motorists due to their greater fuel efficiency, and the inflated diesel prices were causing considerable pain at the pump.
“It’s time diesel drivers across the state reaped the rewards of cheaper wholesale costs when they fill up at the bowser,’’ he said.
Latest RAA data shows on June 27 the wholesale cost of diesel in Adelaide was 227.9c per litre, and the average pump price of diesel in Adelaide was 231.4c per litre, a difference of 3.5c per litre.
Yesterday, the wholesale cost of diesel in Adelaide was 186.6c per litre, and the average pump price of diesel in Adelaide 210.5c per litre, a difference of 23.9c per litre.
Adelaide’s average ULP pump price yesterday was 159.6c per litre.