While Perth residents are celebrating fuel at low prices not seen in more than a decade, the savings are not being passed on to those in regional Western Australia.

Key points: Fuel prices nationally are falling due to international factors

Fuel prices nationally are falling due to international factors Residents in regional WA are paying up to 60 cents a litre more than those in metropolitan areas

Residents in regional WA are paying up to 60 cents a litre more than those in metropolitan areas Transport and turnover do not explain the price difference

Global oil prices have been falling since December due to a price war between large producers Saudi Arabia and Russia, together with the drop in demand due to COVID-19 shutdowns.

It has made a big difference at the bowser for those in Perth and southern parts of the state with the average price of unleaded fuel on Tuesday at 93.5 cents a litre (c/l) and as low as 84.9c/l.

Fuel in Geraldton is still more than $1.30 a litre despite falling as low as 84.9c/l in Perth. ( ABC Mid West and Wheatbelt: Natasha Harradine )

But four hours north in Geraldton, motorists are paying about 40 cents a litre more at 131.9-139.9c/l with very similar prices in the Goldfields.

FuelWatch manager Ben Derecki says Perth drivers are benefiting from competition and a regular fuel cycle which does not apply in country areas.

He said it could take up to six weeks for the falling prices to be reflected in some parts of the state as they use up fuel stores.

More than transport cost

In the Goldfields-Esperance region, Kalgoorlie-Boulder Mayor John Bowler said residents expect to pay more given the 600-kilometre journey to transport fuel from Perth to the mining city.

"Normally we're 8-10 cents dearer than Perth," he said.

"But right now it is ludicrous, it is wrong, and we're being gouged by the fuel companies or the service stations. I suspect it's the fuel companies."

Since the Yellowdine Roadhouse reopened in December, the blink-and-you-miss-it stopover on the Great Eastern Highway has been regularly selling unleaded fuel 20-25c/l cheaper than Kalgoorlie-Boulder's cheapest station, 200km to the east.

"Now if they can do it at Yellowdine … why can't others?" Mr Bowler said.

"Right now it's the biggest gap I've ever seen between Perth fuel prices and Kalgoorlie.

"The fuel companies and service stations are taking us for granted and we've got to turn the battle back onto them."

The discount at the bowser is also being felt at the WA-South Australian border, where the price of unleaded petrol has fallen from 182 to 159c/l in the fortnight since new border restrictions were imposed.

The price of diesel at the border was $1.72 on Tuesday.

Independent inquiry needed, MP says

Geraldton MP Ian Blayney has called for a parliamentary inquiry.

He said an independent committee could take a "good, hard look at how the fuel pricing system works in Western Australia".

"You can't explain it. When you look at where our fuel comes from it's all big service stations along the highway there," he said.

"The line 'we've got to refill them monthly and so we have to sell the older product', well, that just doesn't wash because they fill up their tanks all the time. We know that because we drive past and see the tankers there."

Mr Blayney said an independent committee could provide increased transparency to the industry.

"Depending on how much information you can get out of them," he said.

"You can go to the courts and demand information from them and you can guarantee you'll have a fight with them because they don't like handing any information over to you.

"But you can try and make them justify what's happening."

Mr Blayney stopped short of saying he would push for legislation to limit prices.

"[But] this is wrong, it's not working the way it should be working, and consumers in a place like Geraldton … are obviously just paying through the nose".

'Price gouging'

Heather Jones from trucking company Pilbara Heavy Haulage Girls rejected the suggestion fuel companies were using fuel stores before passing on the savings, describing it as "price gouging".

Heather Jones says fuel stock turnover is still being driven by continued heavy haulage. ( Back Roads: Ron Ekkel, file photo )

"On these high-volume traffic routes I absolutely think they would have gone through their fuel stocks in the last three weeks," she said.

"We have an awesome local independent distributor in Karratha who fills up our fuel tanks between 10 and 13 cents below the pump price up here."

In other Pilbara towns, the Pilbara Heavy Haulage Girls pay pump price in places like Newman, Port Hedland, Tom Price, Paraburdoo, or Onslow.

Their business can use up to 1,800 litres in two days per truck, so it adds up very quickly.

Direct supply cuts cost

In WA's Kimberley meanwhile, the two major fuel retailers at Kununurra were selling unleaded and diesel at around just under 143c/l.

However, local independent fuel provider Cambridge Gulf Limited (CGI) directly imports fuel into Wyndham Port, offering it almost 15c/l cheaper at their self-service station in town.

Bulk fuel suppliers in the Kimberley and Pilbara are reporting a significant drop in demand. ( ABC Pilbara: Susan Standen )

Chief executive Tony Chafer said it was extremely challenging to compete with prices in metropolitan areas, in part due to a significant drop in demand.

He said many factors influence prices, and the impact of the COVID-19 pandemic had led to a huge reduction in Kimberley customers.

"Our demand usually peaks through the tourist season and that's non-existent now, so we're really limited to supplying fuel into the local community," he said.

"All of our fixed costs are going to stay exactly the same.

"One of the other challenges that all fuel providers up here face is there's restriction on vessels coming to ports in terms of quarantine periods.

"Those vessels are quite expensive when they're sitting off at anchor, so that also has to be factored into the price of fuel as an additional cost.

"I can certainly understand why some fuel providers in country WA are finding it tough to drop their price given their fixed costs are still there and revenue has dropped significantly."

Be patient

Mr Chafer said there would likely be a delay before fuel prices drop in remote areas.

He said his company's fuel was sourced from Singapore, meaning it would take a few weeks for prices to stabilise in Kununurra.

"The price drop we've just passed on, that's the most we can put on at the moment because we buy our fuel on a monthly Singapore average," he said.

"That means the monthly average of all the fuel traded in Singapore for the previous month, and because the fuel price has been in a bit of a freefall there's a fair degree of difference between the monthly average and the last day of the month.

"In the coming months when we re-price in May, we will have the potential to actually bring the price down a little bit further as well."

Mr Chafer estimated that since opening their independent fuel terminal two years ago, CGl had taken about 20c/l off the price of local fuel in Kununurra.

The message from FuelWatch Manager Ben Derecki is to shop around in locations where that is possible.