News

AAA Welcomes ACCC Warning - Petrol Prices Should Be 7 Cents Lower

16.1.2007

The Australian Automobile Association today welcomed calls by Australian Competition and Consumer Commission for petrol prices to fall immediately in line with sustained reductions in world prices.

AAA Executive Director, John Metcalfe, said it was timely to see ACCC putting oil companies on notice that they should be reflecting the drop in world prices at the petrol pump to provide some relief for Australian motorists.

“The current Singapore refined petrol price – the benchmark for Australian petrol prices – is around A$76 per barrel (it was around this price in June 2005),” Mr Metcalfe said.

“Then, the average capital city petrol price was around 107cpl, whereas today – normally a low point in the weekly cycle - it is 114cpl (please refer to table).

“Prices should be more than 7cpl lower on average across Australia.

“Australian motorists are the ones suffering due to this failure to reflect lower world prices, and it is good to see ACCC Chief, Graeme Samuel, putting the oil companies on notice.

“AAA and Australian motoring clubs have long called for the ACCC to become more active in monitoring and reporting on the oil companies and we welcome this intervention.”

AAA figures on petrol prices show that the only capital city that has made any move to lower prices in line with international benchmarks is Hobart – whereas other capital cities are from 4cpl to 13cpl higher than they should be, with the average for capital cities being around 7cpl higher.

“The oil industry needs to explain itself - are motorists receiving any new service that justifies higher prices? The answer is no,” Mr Metcalfe said.

“AAA has been in regular contact with ACCC in the past 18 months on our concerns about petrol prices.  We hope ACCC’s recent demands represent a new positive direction in its approach to price monitoring.”

A table comparing capital city petrol prices in June 2005 with prices today is provided below.

  

Petrol prices in capital cities (cents per litre)

 

 

 

CAPITAL CITY

June 2005 1

Today 2

Brisbane

98.5

108.5

Sydney

108.0

112.6

Canberra

104.2

117.1

Melbourne

106.6

111.1

Hobart

113.0

114.1

Adelaide

106.1

110.1

Perth

103.3

114.9

Darwin

113.6

125.9

AVERAGE

106.7

114.3

 

 

 

1 This was the last time the Singapore refined petrol price was about the same as today ($A76 per barrel)

2  16 January 2007

 

 

Sources: www.aaa.asn.au; www.shell.com.au; www.aip.com.au

 

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