20 October 2022 | MTA WA News 

 

6PR's live MISSION IMPOSSIBLE segment with Group CEO Stephen Moir, who explains the record high diesel prices

This morning, MTA WA Group CEO Stephen Moir discussed the factors incfluencing the 60c rise in the price of diesel, with 6PR's Gareth Parker. 

The international wholesale price has risen, situating today's wholesale price at $2.24 per litre. As a result, paying between $2.34 - $2.40 for diesel should be expected as a normality, remembering that the cessation of the fuel excise is likely to be magnifying the effect on the pocket.

"The average household budget is now paying over $100 a week just for fuel" says Mr. Moir.

Because of the nature of the free market, there is little that governments can do to intervene. As global demand increases, players like OPEC will manipulate their prices to suit.  

For example, when it was discovered that diesel cars were able to get 20% more out of a tank (compared to unleaded), refineries increased costs, simply because 'they could.'

"Diesel drivers are still getting good mileage out of the car which still makes it a good option, but diesel prices impact more than just the motiorist directly. Australian transport relies on diesel, so grocery and other ancillary costs are also rising as a result. This has a much bigger impact on the economy," Mr. Moir explains.

The forecast reveals that prices will continue to rise until Christmas at least, but the good news is that Australia is currently actually the 6th cheapest country in the world, in which to buy fuel.

Listen to the full segment here