11:13a.m. 28th December 2007

| By Toby Walker

Petrol users were pumped for more money at the bowser this week when the big fuel suppliers abandoned their expected weekly price drops, but for those filling up with diesel it’s the same old story.

Caltex, Shell, Mobil and BP have been accused of Scrooge-like behaviour over the Christmas break for refusing to knock down their fuel prices during the usual “discount” cycle, a ploy that reportedly gifted the oil industry an extra $3.5 million over two days.

Petrol prices usually follow a cycle in which they peak on weekends and fall to a low on Tuesday and Wednesday, with petrol suppliers saying they can do nothing to break the pattern of peaks and troughs

But long-suffering diesel users – who were paying $1.39 per litre yesterday in Tewantin compared to $1.26 per litre price for unleaded petrol at Caloundra service stations – have become used to missing out.

RACQ spokesman Gary Fites said diesel, like premium unleaded fuel, had become a profitable niche product for oil companies as diesel-engine cars became more popular with budget-conscious drivers.

“About two weeks ago we saw a five cents a litre drop on the Singapore bench price (for diesel) and no movement on the price at the pump here,” he said.

“Unfortunately, that drop in the Singapore price has been and gone.

“It’s on the up again and not for the first time motorists will find themselves in a position where they won’t see the benefits.”

Mr Fites said seasonal demand from the northern hemisphere had contributed to higher Australian diesel prices, which he expected would remain at their current levels over the next two weeks.

And while the Australian Competition and Consumer Commission now has the federal government’s blessing to monitor petrol prices over the next three years it did not have diesel prices within the terms of reference of its recent petrol price inquiry.

Mr Fites comments are unlikely to be welcomed during the holiday season by business owners like Tim O’Keeffe.

He has no alternative but to run his fleet of 11 heavy trucks on diesel and with per litre prices climbing 60 cents in the five years he has run his business, the impact is sizeable.

“It affects our bottom line because our cartage rates are generally six-to-12 months behind what the fuel prices do, so when they go up it comes out of our pocket,” he said.

“I don’t understand why diesel is dearer than petrol when it’s a by-product of unleaded fuel. Diesel up until a year ago was always so much cheaper.