News

Motoring Clubs’ “Please Explain” on Petrol Prices

24.1.2008

Australia’s peak motoring organisation, the Australian Automobile Association, today called on oil companies to please explain the “lag” between benchmark international oil prices and Australian pump prices.

AAA Executive Director, Mike Harris, said it was clear there is a discrepancy between the Singapore Mogas price – which historically impacts directly on Australian prices – and the current higher Australian pump prices.

Mr Harris said AAA and Australia’s motoring organisations – NRMA, RACV, RACQ, RAASA, RACWA, RACT and AANT – wanted to know on behalf of their 6.5 million members why the Australian price was as high as it is.

“The reality is that cheaper prices for the Mogas product, which is purchased by oil companies for the Australian market and is a leading indicator of domestic prices here, are not reflected in the current high prices at the bowser,” Mr Harris said.

“There has been a significant drop in this oil price – from around $100 a barrel down to $90 – which should see a reduction in Australian prices of around 1 cent per litre for every dollar less per barrel.

“This is not happening, so AAA and the clubs would like to know why.

“With the Australia Day weekend here, the lower international prices should be reflected in domestic prices but that is not the case – this happens all too often as a long weekend holiday approaches.

“So we are calling on the oil companies to please explain.”

 

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