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Why has there been an increase in fuel prices?

The recent dramatic rise in fuel prices, as well as several other factors, is what's causing petrol and diesel prices to skyrocket around the country, and according to the Australian Institute of Petroleum, the national average unleaded petrol price rose by 3.3 cents to a record 183.9 cents a litre last week.

The main contributors to the retail price of petrol are Mogas 95, the benchmark price of refined petrol in the Asia-Pacific region, excise, and GST, plus other costs and margins at the wholesale and retail levels.

Russia’s invasion of Ukraine and the OPEC cartel’s refusal to boost crude oil production pushed the cost of petrol to an eight-year high last month, and amid recovering oil demand and a relaxing of COVID-19 restrictions around the world, is also likely to have contributed to the hike in price for both international refined petrol, and average retail petrol.

While the ACCC monitors the retail price of unleaded petrol, diesel, and LPG in all Australian capital cities and in more than 190 regional locations, it is often tempting to point the finger at petrol retailers when prices are very high, but ACCC data shows that late last year 86¢ of every dollar spent by consumers at the bowser was outside of the retailers’ control.

The reason consumers pay more for goods, not just at the bowser, is because fuel is a major component in pretty much everything we consume, and if costs rise from production to transport because of high fuel prices, then it's passed on to consumers.

Petrol prices are at record levels nationally and a rise in the global cost of oil means you will pay more in the coming weeks. 

AANT CEO Anthony Hill told Katie Wolf from Mix 104.9 that the fuel price hike is unlikely to get better any time soon:

Listen to the Mix 104.9 Interview

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