ACCC blasts Melbourne petrol outlets for record high margins

PETROL outlets are accused of ripping off Melbourne motorists about $150 million a year, with the nation’s consumer cop blasting “unjustified” profit-grabbing at the pump.

PETROL outlets are accused of ripping off Melbourne motorists by millions of dollars as margins hit record highs.

The nation’s consumer cop has blasted “unjustified” profit-grabbing at the pump, estimating the city’s drivers paid about $150 million too much in the past year.

A new Australian Competition and Consumer Commission report reveals average gross retail margins for ­unleaded fuel in Melbourne reached 13.5c per litre in April to June.

That’s the highest, in ­inflation-adjusted terms, since monitoring began in 2002.

Over the full financial year, Melbourne’s average margin was 12.3c per litre, compared with a long-term historical ­average of 7.8c.

Petrol outlets are accused of ripping off Melbourne motorists by millions of dollars as margins hit records highs. Generic picture: iStock

“Melbourne people during the last year have been paying 4c a litre too much,” ACCC chairman Rod Sims told the Herald Sun.

“That amounts to about $150 million too much over the course of the year.

“The size of the margins are unjustified. There’s no doubt they are trying to maximise their profits and that disadvantages consumers.”

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ACCC chairman Rod Sims has blasted “unjustified” profit-grabbing at the petrol pump. Picture: Josie Hayden

The ACCC reports on gross retail margins — the difference between retail and wholesale terminal gate prices — rather than actual profit. It doesn’t account for retail operating costs such as branding, transport and labour.

Mr Sims said that although the industry had incurred some increased regulatory costs nationwide, including new sign board rules in Victoria, he believed these would add no more than 1c a litre.

The report found average annual gross retail margins in 2016-17 were highest in Brisbane (13c per litre) and lowest in Adelaide (9.6c per litre).

The industry has consistently denied price gouging. It has previously stated that petrol retailers typically average a 2c-a-litre annual net profit.

An Australasian Convenience and Petroleum Mar­keters Association spokesman was yesterday unable to be reached for comment.

Mr Sims urged drivers to use fuel price websites and smartphone apps, such as ­MotorMouth and GasBuddy.

Buying at the best time and places could save up to $15 a tank, and pressured outlets to price competitively.

The ACCC collects prices from capital cities and more than 190 regional locations across Australia.

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@KarenCollierHS