Daily Importer Margin for Regular Unleaded Petrol for 2008
[ Last Updated 10 September 2008 ]
Graph 2: Daily Importer Margin for Regular Unleaded Petrol for 2008
Graph 2, above, shows the daily importer margin for regular unleaded petrol for 2008. The importer margin is the difference between the retail price less taxes and levies and less the importer cost. That is, it is the margin available to the importer to cover domestic transportation, distribution and retailing costs, as well as wholesalers' and retailers' marketing margins. The importer margin is lagged by one week, i.e. we assume that retail prices this week are based on the importer costs of last week. Statistical analysis has shown this to be a reasonable assumption. The importer cost is based on the Singapore benchmark petrol price plus an estimated quality premium and an assessment of the importation costs of freight, insurance, losses, and wharfage. The importer costs have been sourced from Hale & Twomey's Fuel Price Monitor. Hale & Twomey use industry standard pricing benchmarks to build up the importer cost.
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