Petrol prices remain high over holiday season

MELBOURNE motorists have endured stubbornly high petrol prices over the holiday break.

Servos have been ultra-slow to drop costs at the bowser since prices peaked in mid November.

MELBOURNE motorists have endured stubbornly high petrol prices over the holiday break.

Servos have been ultra-slow to drop costs at the bowser since prices peaked in mid November.

The hip-pocket frustration comes amid warnings to brace for a potential price spike in coming days.

Petrol price hike to hit Australian motorists

Australian Competition and Consumer Commission analysis shows Melbourne’s average unleaded fuel price peaked at $1.31 a litre on November 17.

But, in the almost seven weeks to January 3, per-litre prices decreased only about 7c, the ACCC said.

ACCC chairman Rod Sims said oil-producing nations driving up wholesale prices, exploiting motorists, were largely to blame.

ACCC chairman Rod Sims. Picture: Adam Smith

The metropolitan average unleaded price on Thursday was 122.8c a litre.

“There is no doubt that the Melbourne petrol cycle has come down much more slowly than usual in the run-up to Christmas and it’s also the case that petrol prices and petrol margins were very high in the back half of November as we moved into the holiday period,” Mr Sims said.

“On the other hand, offsetting the normal fuel cycle reduction that you would expect to see was a quite sharp increase in international oil prices due to the OPEC (Organisation of Petroleum Exporting Countries) cartel.”

In Melbourne, petrol prices typically shoot up 15-20c a litre to a peak, then steadily drop over several weeks. Country areas do not experience the same degree of volatility.

The metropolitan average unleaded price on Thursday was 122.8c a litre.

Mr Sims advised motorists to shop around in coming days and consider filling tanks as prices could again soon rise.

Higher international crude oil and refined petrol prices, and a weaker Australian dollar, had bumped up wholesale petrol costs to their highest level since September, 2015.

The wholesale price had sharply climbed 15c in almost seven weeks, from $1.05 to $1.20 a litre.

OPEC’s recent decision to restrict oil production was a key factor, Mr Sims said.

The price-fixing oil producers, mainly based in the Middle East, continued to exploit Australian motorists, he said.

“It’s impossible to tell how much the OPEC cartel has boosted oil prices but it would have to be at least double what they otherwise would be,” he said.

Originally published as Petrol prices remain high over holiday season