What Drives Petrol Price Dispersion across Australian Cities?

Petrol directly impacts the ability of and extent to which households can engage in day-to-day activities ultimately influences aggregate economic activity. price increases lead major disruption, especially among most vulnerable, such as low-income families. In Australia, petrol prices differ substantially between metropolitan regional areas, drivers must pay more for purchasing than those capital cities. This research explored why retail vary from one city another within Australian regions. this study, clustering methods panel models will be used identify factors that cause differences. The findings revealed a considerable part differences arose specific characteristics cities influence demand supply petrol, thereby causing variations decisions. were influenced by wholesale prices, oil diesel vehicles, population density, station public transport accessibility. These are main determinants contribute significantly provide critical information agents interact market. From social welfare perspective, government authorities consider these improve living standards consumers’ under pressure