Junee servo lifts diesel 14c after fuel tax cut announcement

A JUNEE service station has come under fire after lifting its diesel price within hours of Monday’s federal fuel tax announcement, leaving motorists facing prices still well above $3 a litre even after relief arrives.

Checks by The Junee Bulletin on Monday night confirmed diesel at the Shell service station on Illabo Road had climbed to 329.9 cents per litre.

That is up 14 cents from 315.9c/L at the time of the announcement, and up a whole 20 cents from 309.9c/L earlier that morning.

The increase stands in stark contrast to the rest of town, with the Illabo Road site the only one of Junee’s three major service stations to lift prices following the federal government’s decision to halve the national fuel excise for three months.

Diesel prices at the remaining two service stations, Mobile and United, remained at 313.9 and 315.9 respectively at the time of publication on Tuesday morning.

The $2.5 billion excise cut is expected to reduce prices by 26.3 cents per litre from Wednesday. However, how long it takes for the updated price to hit the bowser could vary.

You can read more on the lag between wholesale price movements and what is seen at the pump, here.

READ MORE: Why prices don’t always move as expected

Based on bowser prices in Junee at the time of the announcement, the move would have brought diesel down to just under $3 per litre.

Instead, the Illabo Road servo lifted diesel by 14 cents per litre after the cut was announced, effectively wiping out more than half of the expected relief before it even reaches the bowser.

Photo: © The Junee Bulletin

The service station is operated by Vantage Fuels under its “Bowser Bound” banner, which has been in place since early 2022.

The same site sparked a regional frenzy in November 2024 when it sold fuel for 99 cents per litre as part of a grand opening promotion.

Now, less than 18 months later, it finds itself at the centre of a very different conversation.

So where does the money go?

For a small regional service station, even modest price movements can quickly add up.

At an estimated 100,000 to 150,000 litres sold per week, a 14-cent increase equates to roughly $14,000 to $21,000 in additional weekly revenue.

However, industry data shows only a small portion of the pump price is retained as profit.

READ MORE: Where your money really goes

Most of what motorists pay at the pump is made up of wholesale fuel costs and government taxes, including a fixed fuel excise of 52.8 cents per litre and GST, with the 10 per cent GST applied on top of the total price, including the excise component.

Only a small fraction remains as profit on the fuel itself, with typical net margins often estimated at just 2 to 5 cents per litre.

Most service stations rely on higher-margin convenience store sales to drive overall profitability.

Calls for scrutiny

While fuel retailers are not legally required to immediately pass on excise reductions, sudden price increases in the wake of a government relief measure are likely to draw scrutiny.

Residents concerned about possible price gouging or anti-competitive behaviour are being urged to report it to the Australian Competition and Consumer Commission.

Complaints can be lodged online or by phone (1300 302 502), with consumers encouraged to provide details including the location, time and date, as well as any supporting evidence such as photos or receipts.

For many across Junee and the wider Riverina, the federal government’s announcement offered a rare glimmer of relief amid a worsening fuel crisis.

But Monday night’s developments highlight a familiar frustration at the bowser: what’s announced in Canberra doesn’t always translate on the ground.