The method & basis of the setting of the import parity price for unleaded petrol & diesel in Australia
The MMA study focused on the three main components of the import parity price (IPP) for regular unleaded petrol, premium unleaded petrol and diesel—namely, the refined fuel benchmark, the fuel quality premium and freight. The study addressed four key questions:
- are Singapore prices the most appropriate to use?
- which are the appropriate price benchmarks to use?
- how is the quality premium determined?
- are the IPP calculations made by each of the refiner–marketers appropriate?