ACCC: Petrol companies may be deliberately increasing prices before holidays

ONCE considered a myth, the annual petrol price hike could be a reality as the ACCC admits Big Oil may be increasing prices before holidays.

The ACCC is looking into whether petrol companies are increasing their prices before the holidays. Picture: News Limited

EXCLUSIVE

FOR the first time, the ACCC has said petrol companies may be deliberately increasing prices just before holidays.

Previously the Australian Competition and Consumer Commission has dismissed as a myth the widely held belief among motorists that Big Oil runs rorts at Christmas, Easter and on long weekends, when demand for fuel is high.

In its most recent probe of price movements prior to public holidays, published in 2014, the ACCC said: “There is little evidence that public holidays affect the timing of price cycle increases in any city.”

“We are now reassessing that view,” the competition watchdog’s chairman Rod Sims told News Corp Australia yesterday.

Analysis by News Corp Australia suggests that nationwide, fuel retailers would make a combined $32 million extra in gross profit if prices rose to the top of the cycle this weekend and stayed there until Christmas.

ACCC chairman Rod Sims says he is “now reassessing” the view that public holidays affect the timing of price cycle increases. Picture: Adam Smith

Yesterday the ACCC put petrol companies on notice that it was watching their prices closely.

Based on the length of recent price cycles there was no good reason for another hike between now and the start of the festive season.

Mr Sims told News Corp Australia: “We are trying to point out where we think prices should and shouldn’t be. We think that puts pressure on.”

The sure-fire way motorists can cut petrol costs

Fuel purchases are about to reach their yearly peak of one million litres an hour, before plunging to the annual low point once people have reached their holiday destinations.

“We would not want to see the top of the cycle during the peak driving season,” Mr Sims said.

The Australian Institute of Petroleum did not respond to requests for comment. However, its website says: “ACCC analysis clearly shows that petrol prices do not increase because of long weekends or public holidays.”

The Australian Automobile Association — which represents the eight million members of motoring clubs across the country — did not comment either.

There’s growing evidence that petrol companies may be deliberately increasing prices just before holidays. Picture: AFP

Mr Sims encouraged motorists to consider using price-watch smartphone apps such as MotorMouth, GasBuddy and, in NSW, the state government-run FuelCheck.

“These apps are very valuable,” Mr Sims said. “Consumers can drive better behaviour” by the sellers of fuel if they go to those retailers that keep prices down.

ACCC price monitoring finds:

* in Sydney, the average E10 price peaked at $1.30/L on December 11 and has been falling since then;

* in Melbourne, regular unleaded jumped to an average of $1.30/L on November 18 has been declining slowly after that;

* in Brisbane, the average charge for unleaded rose to about $1.36/L on December 13; and

* in Adelaide, unleaded kicked more than 20c/L higher on December 6 to an average of about $1.29/L and has since fallen.

Most regional prices don’t have a high-to-low cycle like the state capitals. Perth has a fixed weekly cycle.

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