The Lismore App has continued to receive emails asking if we can find out why Lismore and the Northern Rivers' petrol prices are so high compared to northern NSW and Queensland.

If we use Unleaded 91 as the price guide, you will pay 189.9 in Lismore, 181.7 in Casino, 177.9 at Ballina, 172.9 at Brunswick Head, 174.9 at Chinderah and if you cross the border into Queensland 152.9 on the Gold Coast.

If you have a 60-litre fuel tank, which is pretty standard, the extra cost ranges from $4.80 compared to filling up in Ballina to $24 if you happened to fill up in Queensland for the average price. That is per tank so depending on how much driving you do, the fuel bill can add up over a week.

By the way for U95, the price difference is $21.72 per tank.

So, why are we paying so much more for our fuel?

Ian McDonald is a local resident who has a long association in the fuel industry in NSW, Queensland and Victoria as a wholesaler, retailer and reseller with BP. In fact, Ian has been around the industry all his life as his father was selling petroleum products in 1921.

"There are a lot of factors arriving at the price of the pump so to speak," Graham said.

The Australian Institute of Petroleum has a wholesale price of fuel of 152.7 cents a litre (yesterday's price) which includes the refiner margin of 7 to 8 cents per litre, gst of 10% and the federal government's excise of 23 cents per litre (following their decision to half the excise rate from 45 cents a litre on March 30 2022). The federal government excise and the gst make up approximately 30-40% of the price of fuel at the full excise rate of 45 cents a litre.

Transportation will definitely affect the price we pay but not to the extent we think.

"Petrol deliveries are generally done in a B-Double with 5 compartments in a barrel and 3 compartments in a trailer which equates to 60,000 litres of fuel. The cost of transporting fuel from Brisbane to the Northern Rivers is about 1.5 to 2 cents a litre," Ian explained, "Approximately $1,200."

"Delivery costs are not critical for the local price."

Ian said the average margin in the fuel industry is 3 to 3.5 cents a litre.

So, the petrol pump price could be reasonably assessed at 158.2 cents a litre which is reflected in the Gold Coast prices.

The ACCC (Australian Competition and Consumer Commission) say an owner's margin is ultimately determined by the level of competition in the marketplace.

Can that explain Lismore's high prices?

There are still a number of petrol stations closed like the United on Ballina Road and the Caltex on Woodlark Street so competition is low.

Ian doesn't mince his words in his summary of local petrol prices.

"It is clear to me on the price differential between areas (40c a litre) that this is a classic case of price gauging. It is bloody unfair to the people of Lismore who have suffered for 6 months."

The other argument you can make is the money lost by service stations, like any business, during the February 28 megaflood. However, at a price differentiation of 31.7 cents a litre that is an extra profit of $19,020 per 60,000-litre petrol tanker.

When Ian was selling fuel he was selling between 40,000 and 60,000 litres per week. If those margins were to stay constant, that is an extra profit of $659,360 to $989,040 per year per petrol station.

With inflation running at 6% and expected to peak at 7.75% in the December quarter (meaning household costs have already significantly increased) and Lismore experiencing the effects of a massive natural disaster, is now the time for anyone to be overcharging in our current situation?