3 November 2004
AA PETROL WATCH - October 2004
AA Petrol Watch observed that fuel prices remained at high levels during October, with the pump price for 91 octane
reaching a record high of 125.9 cents per litre in many main centres. 96 octane sold for as much as 130.9 cents per
litre in some main centres during the month.
Diesel prices also reached an all time high, selling for as much as 84.9 cents per litre in some areas.
These high fuel prices continued to reflect the all time high of the international price for oil and allowing for some
variation in the exchange rate.
The importer margin for petrol maintained a level of between 12.5 and 14 cents per litre.
In the wake of continuing high fuel prices, the Association today raised its concern about the pricing of premium grade
petrol by fuel retailers.
It is noted that retailers in some parts of the country are now offering a range of premium grade petrol varying between
96 and 98 octane, but that there is a lack of consistency in the pricing of these fuels. 96 octane typically sells at a
price between 5 and 6 cents greater than 91 octane, but 97 and 98 octane pump price in some locations is an additional 5
cents per litre more than the pump price for 96 octane.
“Inconsistencies between the pricing of higher octane fuels raises motorists doubts about the fairness of the pricing
approaches being employed. Motorists want to see the effects of competitive pricing in the fuels market, especially with
the overall pump price being so high due to the international oil price” George Fairbairn, AA Director of Public Affairs
said today.
It was also noted that some retailers were failing to clearly show the octane level of the premium grade petrol they are
selling, which was confusing some consumers.
AA Petrol Watch will continue to monitor fuel prices and report on them regularly.
ENDS