Low fuel prices failing to flow on to Sydney motorists
Drastic falls in wholesale fuel prices are still not being passed on to Sydney motorists, with the NRMA slamming retailers charging more than 90 cents a litre as showing “appalling form”.
NSW
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Petrol prices continue to fluctuate wildly across Sydney, with motorists still paying an average petrol price 30 cents per litre higher than the wholesale price.
While unleaded petrol could on Thursday be bought as cheaply as 83.5 cents per litre at one western Sydney service station, the average price was about 119.5 cents per litre and only dropping by 1.5 cents per day. One station in Edgecliffe was charging 149.9 cents.
The discrepancies have been blasted by NRMA spokesman Peter Khoury who says retailers and multinational oil companies are “hoarding profits at the bowser” at the expense of motorists who are paying premium prices amid job uncertainty during the COVID-19 crisis.
“What are you doing and why are you doing this at a time when Australians need you to do the right thing?” Mr Khoury said today.
“These falls across these capital cities are going at a snail’s pace. We’re talking in some instances less than a cent a day. So this is pretty appalling form.”
“When you consider the fact that the average price in Adelaide is 90 cents a litre, 90 cents for the average, yet you’ve got prices around the 120s in most of the other capitals gives you get an idea of just how far off these guys currently are.”
Mr Khoury said drivers should be paying less than a $1 a litre, in line with Adelaide’s average of 89.6 CPL.
Falling global oil demand and the ongoing Russia-Saudi Arabia price war has sent Singapore Mogas, the nation’s international benchmark price, below $US20 a barrel to an 18-year low.
The wholesale price in Sydney has also fallen to about 86 cents per litre.
“So that’s what the oil companies are buying petrol for so the fact they’re currently still selling it in the 120s and in many cases the 130s gives you an idea of how far off they are.
“The average price shouldn’t get down to below a dollar, we think it should get down to below 90 cents. The fact we’re not there yet is an outrage.”
Australian Competition and Consumer Commission chairman Rod Sims is monitoring the market but the regulator hasn’t progressed to “naming and shaming” gougers as flagged weeks ago.
Mr Khoury said the NRMA was reluctant to call for reforms to set prices as it would discourage service stations from offering fuel at cut-rate prices.
But he admitted oil companies’ “bizarre behaviour” was making the organisation’s position difficult to justify.
“It’s becoming harder and harder for the NRMA to … continue on this path of competition when clearly there are too many service stations who aren’t prepared to pass on the falls that we’re seeing globally,” Mr Khoury said.
– with AAP