The situation has prompted some to claim that motorists are being 'held to ransom', but fuel companies say critics don't see the bigger picture.
According to the Australian Institute of Petroleum, the national average retail price of diesel was $2.27 per litre in the first week of December, 29.8 cents higher than the average wholesale price.
"If you look at October, [profit margins] were actually near zero to negative. That really demonstrates that part of the challenge for most retailers is navigating some extreme volatility, in terms of both oil prices and the consequent impact on wholesale diesel prices."Mr McKenzie said the industry was "dealing with a level of volatility that we haven't seen in the market for more than 25 to 30 years".
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