Oil prices

Mail Contractors are acutely aware of fluctuations in fuel prices.The price paid at the pump has three main parts - cost to the retailer of the product, tax, and retail/distributor margin. This last component is margin, not profit. That is, the retailer has to pay all of their overheads out of that margin.Obviously, the price of petrol varies in line with the price of crude oil. A $US1 increase in the price of a barrel of oil usually translates into a 1c per litre rise at the pump.Global oil prices aside, taxes make up a considerable portion of the price paid at the pump. Federal Government excise and GST account for about 47c per litre on petrol priced at $1 per litre.