Service station franchisees have pleaded with their customers to understand they barely make any money even through petrol prices are at a 10-year high.

The Caltex business owners’ memo to motorists was posted to social media as average unleaded prices across Australia this week surged by 1.8 cents to 159.3 cents a litre – the dearest they had been since July 2008.

Bowser prices have risen even though the terminal gate wholesale price for regular unleaded has fallen by 4.5 cents to 142.7 cents a litre during the past week.

This is the bulk price of petrol when it leaves a shipping centre, before arriving at a service station.

A service station franchisee has pleaded with customers (memo pictured) to understand they barely make any money even through petrol prices are at a 10-year high

A service station franchisee has pleaded with customers (memo pictured) to understand they barely make any money even through petrol prices are at a 10-year high

A Caltex business owner’s memo to motorists was posted to social media, as average unleaded prices this week climbed by 1.8 cents to 159.3 cents a litre – the dearest since July 2008

Despite a wholesale and retail price gap of more than 16 cents a litre, the Caltex franchise owners in Queensland told their customers they only received a flat commission of three cents for every litre sold, regardless of the price.

‘This commission is not linked to the price but the litres sold,’ said the memo posted to Reddit on Wednesday by a customer.

‘The more litres we sell the more commission we make.

‘It’s in our interest to have lower pricing as this increases the litres sold.’

They explained Caltex owned, maintained and set prices at their service station, which they ran under licence.

A Caltex spokeswoman said the contents of the note were factually correct but declined to defend the existing commission system with regards to the Reddit post.

Despite a wholesale and retail price gap of more than 16 cents a litre, the Caltex franchise owners explained they only received a flat commission of three cents for every litre sold

‘It doesn’t make any claim of fairness or otherwise,’ she told Daily Mail Australia.

The Reddit poster said he respected how the franchisees had been so frank with customers.

‘Have to respect the fact they’re willing to be so transparent with their customers to save their employees some grief,’ he said.

However, another Reddit poster, wondered if the transparency could get them in trouble with Caltex.

‘Could end badly for them. I’m sure the franchise agreement has limitations on discussing the payment structure like this,’ it said.

Sydney petrol prices have risen by 11.3 cents a litre in just one week to 161.7 cents a litre.

Melbourne motorists have been spared much of the hip pocket pain during the past week, with average petrol prices actually falling by an average of one cent a litre to 153.4 cents a litre, Australian Institute of Petroleum data showed.

Unleaded prices rose in Perth by 1.6 cents to 159 cents a litre.

In Canberra, the cost to motorists increased by 1.4 cents to 165.7 cents a litre.

Hobart prices climbed by 0.4 cents to 164.4 cents a litre while in Darwin they increased by 1.9 cents to 163.2 cents a litre.

Motorists were lucky in Adelaide, where prices fell by 10.7 cents a litre to 152 cents a litre, and in Brisbane, where they dropped 0.6 cents to 165.4 cents a litre.

Extracted from Daily Mail