Diesel prices are hitting record levels with motorists paying more than $2.33 a litre right across the state.
In Bundaberg, the daily average peaked at an all-time high of $2.33 on Monday and that’s since grown to $2.34.
RACQ spokesperson Lauren Cooney says the high costs are due to international factors, rather than overcharging by fuel companies.
“There’s a misconception that fuel companies are overcharging motorists on diesel, but in fact retail margins are reasonably low,” Ms Cooney explains.
“For example, the current average retail margin on diesel sold in Brisbane is 9.5 cents per litre, usually this sits at around 12 cents per litre.”
Ms Cooney says exceptionally high diesel prices are being experienced right across the world.
“Russia is a major manufacturer and distributor of diesel, especially to the European market. With the ongoing war in Ukraine and sanctions against Russian exports, the global supply of diesel has fallen significantly, causing wholesale prices to rise and remain incredibly high,” she says.
Ms Cooney explains the demand for diesel is much higher than the demand for unleaded.
“Diesel is an industry fuel and is used far more than unleaded, for example in Queensland we consume more than twice as much diesel as we do petrol,” Ms Cooney says.
“The production cost of diesel is similar to unleaded and both products are processed similarly. It’s supply and demand factors that are pushing up prices, rather than the productions costs.
“With retail margins currently low for diesel, the bad news is prices are likely to continue to creep a little higher.”