competitive fuel prices
The AAA has concerns over the level of competition in Australia’s fuel market. The evidence suggests that there have been steep increases in petrol price margins in recent years, with the largest increases being recorded in regional markets.
A key concern for the motoring clubs is the ability of petrol companies to exchange pricing information and make pricing decisions based on their competitors’ data, while consumers are kept in the dark. The AAA supports improved transparency which could be achieved through making the same pricing information being shared between petrol retailers available to consumers.
Fuel is a significant and essential expense for many Australian households, which serves to highlight the need for effective competition in the retail and wholesale fuel markets. Ensuring strong competition in the fuel market should be a priority for the Government and the ACCC must be given the powers they need to enforce effective competition.
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fuel price boards
Motorists rely on fuel price boards at retail petrol stations to decide on where and when to fill up their car. But misleading price boards make it more difficult for consumers to make an informed choice about which petrol station is offering the cheapest fuel. The AAA supports a nationally consistent approach to fuel price boards.
Fuel price boards should only show the generally available, undiscounted price. If there are any special offers available, they should be clearly advertised. Fuel that is out of stock should not be advertised on the price board.
Motorists are currently subject to a range of federal and state taxes. The fuel excise, GST, registration charges, stamp duty on registration and customs duty on imported vehicles are all paid by motorists throughout Australia. In addition the Luxury Car Tax is an inefficient tax on vehicles which introduce new safety and environmental technologies to the marketplace.
Motorists already pay their fair share in tax and future reform should ensure that there is no net increase in the overall cost of motoring. Furthermore, the AAA believes that a clearer link needs to be established between the taxes motorists pay and the funding of land transport infrastructure.