Fuel should be more affordable, says ACCC... again

The Australian Competition and Consumer Commission (ACCC) has pulled up short of saying that motorists are being ripped off at the petrol pump, but has revealed in its report on the Australian petroleum industry that retailers are holding back some cost savings.

It's essentially a replay of the ACCC's statement this time last year. Average prices across Australia's five largest cities have dropped by 3.9 cents per litre (cpl) during the second quarter of this year, bringing the average pump price down to 125.2 cpl. That was despite retail margins hitting a new peak – higher than at any time since the ACCC began monitoring fuel prices in 2002.

"While motorists are enjoying the cheapest petrol since 2002, we believe prices should have been even lower given the continuing high gross retail margins," ACCC Chairman Rod Sims was quoted saying in a press release.

The ACCC chairman believes the retailers are reaping the benefits of a lower landed cost for oil – and not passing it on in full to the consumer.

"Prices at the pump in 2016-17 are reflecting the relatively low international price of refined petrol which fortunately is a result of the OPEC cartel failing to successfully restrict the supply of crude oil," Sims said.

"Of the price paid at the bowser, 42 per cent is the international price of refined petrol. Another 42 per cent is taxes (i.e. GST and excise)."

Brisbane residents are paying the most for their petrol, the ACCC reports. Over the quarter, Brisbane motorists are paying 3.3 cpl more than the average for the other four cities.

"The ACCC is currently examining the high retail prices, margins, and profits in Brisbane and a report is scheduled to be released in the next few weeks," Sims revealed.

Outside of the big cities, according to Sims, consumers do not have access to affordable fuel, but they could help themselves by cross-shopping.

"Motorists in Launceston, Armidale, and Cairns are paying too much for petrol. We encourage people to use fuel price apps to locate petrol stations in their area with relatively lower prices.

"Competition is driven by the willingness of motorists to shop around for the best price. For example, in Cairns, motorists that shop around can find petrol that is consistently around 10 cpl lower than the average.

"The ACCC will continue to monitor fuel prices in all these regional towns in its quarterly petrol reports."