ACCC say shopper docket limits will cap petrol retailers' profits

PETROL retailing profits are at twice usual levels yet the competition watchdog thinks new shopper docket limits should put a "lid" on earnings.

PETROL retailing profits have surged to more than half a billion dollars - twice their usual levels - according to the competition watchdog.

But the Australian Competition and Consumer Commission thinks new limits on shopper dockets should put a "lid" on earnings.

The businesses behind servos rose for the fourth straight year to $535 million in 2012-13, more than double the 10-year average of $262 million, according to the annual ACCC petrol report, released yesterday.

Profits from petrol neared $300 million, close to triple the long-run result of $111 million, while earnings from diesel, at $85 million, were nearly 60 per cent higher than normal. Convenience stores added a further $205 million to the bottom line - more than twice what they contributed four years ago.

PETROL DOCKETS KILLING SERVICE STATIONS

MOTORISTS PAY 14C MORE FOR PETROL

Profits soar ... ACCC calculations based on date from firms monitoring through the ACC's monitoring process. Real values in 2012-2013 dollars. Source: ACCC

But the run of growing profits for petrol retailers' - the ACCC report covers Caltex, BP, Coles, Woolworths, Neumann, Ausfuel, 7-Eleven and On the Run - appears to be at an end.

DO YOU THINK PETROL PRICES WILL FALL? COMMENT BELOW

ACCC chairman Rod Sims told News Corp Australia that it expected industry earning would stop rising as a result of the limits places on shopper dockets, which had boosted margins not only at supermarket-linked servos but at others, too.

Only one in five motorists use shopper dockets. Motorists who don't have been paying an additional 2c/L, Australian Automobile Association has indicated. ACCC analysis of petrol retailers' own figures supports this, but it says the numbers can't be revealed by law.

Last week the ACCC said discounts linked to spending in supermarkets would be limited to 4c/L from January 1.

"We would think that would put a bit of a lid on retail petrol profits," Mr Sims said. Shopper dockets have been at 8c/L for much of the past two years.

Looking at the entire petrol supply chain in Australia, the biggest chunk of profits - $863 million in 2012-13 - went to wholesalers, including BP, Caltex, Mobil, Shell, Liberty, Ausfuel, Neumann and United. That result was 6 per cent above the decade-long average. Only $205 million came from petrol, while $65 million was reaped from diesel.

Mr Sims said an increase in the availability of terminal capacity plus growth in petrol importing "will have an effect" on keeping wholesaler profits in check.

Refiners - BP, Caltex, Mobil and Shell - made a combined loss of $107 million on this part of their operations, the ACCC estimated. They've been average a combined profit of $665 million.

Mr Sims said that 53 per cent of the cost of petrol was the raw product while another 36 per cent was tax.

"We are focusing on that last 11 per cent," Mr Sims said.

WHAT THE ACCC REPORT SAID ABOUT THE NSW MARKET

What the ACCC report said about the NSW market

The average price in Sydney in 2012-13 was 144.2c/L, 2.8c/L more than in 2011-12.

Price cycle jumps were 2.1c/L higher than the previous year 14.1c/L vs. 12c/L.

There were fewer opportunities to buy at lows, with only 15 price cycles compared to 28 the previous financial year.

Tuesday was the best day to buy.

NSW non-metropolitan motorists paid 8.7c/L more than city drivers in 2012-13. The long-run average is 5.3c/L.

VIC

The ACCC report found the average price in Melbourne in 2012-13 was 143.9c/L, 3.2c/L more than in 2011-12.

Price cycle jumps were 2.1c/L higher than the previous year 14.9c/L vs. 12.8c/L.

There were fewer opportunities to buy at lows, with only 15 price cycles compared to 23 the previous financial year.

Wednesday was the best day to buy.

Victorian non-metropolitan motorists paid 6.3c/L more than city drivers in 2012-13. The long-run average is 3.9c/L.

QLD

The ACCC report found the average price in Brisbane in 2012-13 was 147.2c/L, 1.8c/L more than in 2011-12.

Price cycle jumps were 2.9c/L higher than the previous year 13.3c/L vs. 10.4c/L.

There were fewer opportunities to buy at lows, with only 15 price cycles compared to 28 the previous financial year.

There were more lows on Tuesday than any other day. But it also had the equal-highest number of peaks.

Queensland non-metropolitan motorists paid 5.8c/L more than city drivers in 2012-13. The long-run average is 3.5c/L.

SA

The ACCC report found the average price in Adelaide in 2012-13 was 143.3c/L, 1.5c/L more than in 2011-12.

Price cycle jumps were only 0.1c/L higher than the previous year, but at 16.2c/L they remain the biggest hikes in the nation.

There were fewer opportunities to buy at lows, with only 20 price cycles compared to 26 the previous financial year.

Monday and Tuesday were the best days to buy.

SA non-metropolitan motorists paid 7.2c/L more than city drivers in 2012-13. The long-run average is 4.7c/L.

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