In other words, Governments take taxes from petroleum at the production of crude oil stage and then again at the petrol pump. The average overall Government 'take' is more than half the final retail price of petrol. Terminal wholesale prices generally reflect spot prices for petroleum products in Singapore, plus shipping insurance and wharfage costs. Under the market reform package released by the Federal Government in June 1998, refiners must now offer access to third party bulk purchasers at their terminals. This is particularly designed to benefit cooperative purchases, for example by farmers groups.
Distributers compete against other distributers servicing the same regions.
Distributers set their own prices but have to cover the costs of transport from terminals and the costs of operating a distribution operation. Competition at the wholesale level results in frequent discounting. Retail pricing Present Federal legislation forbids oil companies setting retail petrol or diesel prices at service stations except at the small number which are company-operated or run by a company's commission agent. These sites represent less than 5 percent of the total service stations in Australia, numbering around 8,500. The five other categories of service station which make up the bulk of the Australian network are franchisee, owner operated, distributor-owned and supplied, independent brand outlets or supermarker sites.