ACCC calls on consumers to shop around for fuel
Cheapest fuel in 14 years should be cheaper still, says consumer watchdog, but lower costs are not being passed on to customersMotorists are paying more than necessary to fill the tank, according to the Australian Competition and Consumer Commission (ACCC).
A survey conducted by the ACCC has found retail petrol prices to be at the lowest level in 14 years, yet retail profit margins reveal the retailers are far from struggling. It's a sign, the ACCC argues, that the lower international cost of oil is not being passed on in full to the retail customer in Australia.
Retail prices during 2015/16 averaged 121.7 cents per litre across Australia's five largest cities – Sydney, Melbourne, Brisbane, Adelaide and Perth. Pricing that low hadn't been seen in the retail market since 2002/02, after adjusting for inflation. Gross retail profits, however, averaged 11.2 cents per litre, which is the highest level since the ACCC began monitoring the difference between retail and wholesale pricing in 2002.
"We remain concerned about the petroleum industry's high gross retail margins, which indicate motorists are not reaping the full benefits of lower international crude oil and refined petrol prices," ACCC Chairman Rod Sims said.
"Bowser prices for motorists last year were the lowest they've been on average for 14 years, but this report suggests that in order for there to be more competitive pressure on retailers, consumers need to shop around and reward those offering the best-priced fuel."
The ACCC encourages motorists to use apps, such as MotorMouth, to track down the most competitive petrol price before filling up.
"Some motorists have been quick to take advantage of these petrol price apps and are already using them to ensure they are getting the best price when they fill up. This improved price transparency puts pressure on retailers to offer competitive prices or risk customers driving to a petrol station that does," Mr Sims said.
"We encourage people who are concerned about petrol prices to take advantage of these apps. Motorists have the ability to drive competition in the fuel sector literally in their hands."
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