Fuel price savings not found in regional SA: RAA

It figures show the gap between wholesale fuel costs and pump prices in regional SA has doubled.

In March, the wholesale price of unleaded petrol fell by 36.9 cents a litre, from $1.25/L to 89c/L, but average pump prices in country areas have only dropped by 16.7c/L - from $1.43/L to $1.27/L.

This means the gap between the average pump price and wholesale price in regional SA has jumped from 18c/L to 38.2c/L.

RAA fuel expert Mark Borlace said wholesale price savings must be passed on to country motorists as the economic impact of the Covid-19 crisis worsens.

"Wholesale price cuts do take longer to pass onto country bowsers due to lower sales volumes compared to Adelaide, however the current rate of price reduction is unwarranted,'' he said.

He said Whyalla prices were one example where fuel has only dropped about 10c/L.

"Adelaide motorist have reaped massive savings at the bowser due to falling oil prices, and RAA believes significant price cuts should also be enjoyed by regional motorists.," he said.

RAA figures show petrol pump prices falls have varied across the state.

In contrast to Whyalla, Port Lincoln average prices have fallen by almost 23c/L - from $1.48/L to $1.25/L - this month.

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Mr Borlace said diesel pump prices had also failed to fall as far as they should, both in Adelaide and regional centres.

This month wholesale diesel prices have dropped about 19c/L, while the average pump price in Adelaide and regional SA has dropped by about 12c/L.

Mr Borlace reminded retailers that the national consumer watchdog, the Australian Competition & Consumer Commission, recently issued a warning it would name and shame individual retailers not passing on falling wholesale costs.

"We have raised our concerns with the ACCC about the slow rate at which fuel cost savings are being passed on to SA motorists,'' Mr Borlace said.

"This is why we are encouraging retailers to pass on savings as soon as possible.''