A West Australian motoring body says a situation in the remote Kimberley, where a local company is selling diesel at prices significantly lower than in other parts of the country, may be difficult to replicate more broadly.

On the weekend some motorists in far north WA could buy diesel for $1.99 cents a litre from Cambridge Gulf Limited (CGL).

The price charged at its outlets in Kununurra and Wyndham was 20 to 30 cents cheaper than in Sydney, Melbourne, Perth, Darwin and elsewhere in the region.

Diesel is a vital commodity in far north WA, where trucks service vast cattle stations and many people own four-wheel drives.

CGL imports diesel from Singapore into Wyndham and the price for a monthly shipment of up to five million litres guides what is offered at the bowser.

If supplies run low, CGL trucks supplementary fuel in from Darwin, which can influence the retail price.

Tony Chafer says CGL can operate on slimmer margins than other businesses.(ABC Kimberley: Tom Edwards)

Chief executive Tony Chafer said he could only guess as to how the company could significantly undercut major retailers.

“We don’t have to make a particularly large margin,” he said.

“We’re a fairly small business — we don’t have massive overheads.

“We’re very keen to make sure in these particularly hard times, with the rising cost of living, that we can do whatever we can to pass on some savings to our community.”

The war in Ukraine has driven up petrol prices and caused financial pain across the country, but Mr Chafer said the latest price offered by CGL’s supplier looked promising.

“The price of fuel in Singapore has come down significantly … by about a third,” he said.

Diesel is shipped into Wyndham every month.(Supplied: Cambridge Gulf Limited )

‘Unique’ model, expert says

RAC vehicles and fuels manager Alex Forrest said the motoring body was aware of CGL’s operations and described them as “unique”.

“CGL is running a relatively unusual set-up and they’ve been able to make a pretty convincing case of the success,” he said.

“They do import fuel directly from Singapore at significantly higher volumes.