What’s been driving up diesel prices

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The federal government recently slashed the fuel excise in a bid to ease pressure on petrol prices across Australia.

But the cost of diesel remains sky high.

Dr Lurion De Mello, Senior Lecturer in the Department of Applied Finance at the Macquarie University Business School, told Tom Elliott it all related to supply issues.

He said those problems began post-lockdown when the economy opened-up again.

“The problem kind of started in December and January,” he said.

“The refineries weren’t able to keep up with the sudden increase in demand.

“You have to keep in mind that diesel isn’t just used for transportation, it’s used in agriculture and so many other different applications.

“There was a huge surge in demand.”