Petrol price cuts are not being passed on to motorists: ACCC

Australian motorists are not reaping the full benefits of lower crude oil and refined petrol prices, says the ACCC.

Motorists are not reaping the full benefits of lower international crude oil and refined petrol prices, says the ACCC.

Australian motorists are getting an increasingly raw deal at the petrol pump despite prices hovering around their weakest levels in 14 years, the competition watchdog has acknowledged.

The Australian Competition and Consumer Commission said its June report into the petroleum market found an average price of 121.7c a litre across Australia’s five largest cities through the 2015-16 financial year, the lowest mark since 2001-02 in inflation-adjusted terms.

The falling prices are linked to depressed global market conditions for crude and while on the surface consumers may have reason to celebrate, it appears retailers are keeping plenty for themselves as margins rise to a record high.

The ACCC said margins averaged 11.2 cents per litre through 2015-16, the uppermost mark since measurements began in 2002.

“We remain concerned about the petroleum industry’s high gross retail margins, which indicate motorists are not reaping the full benefits of lower international crude oil and refined petrol prices,” the watchdog’s chairman Rod Sims said.

“Bowser prices for motorists last year were the lowest they’ve been on average for 14 years, but this report suggests that in order for there to be more competitive pressure on retailers, consumers need to shop around and reward those offering the best-priced fuel.”

Mr Sims urged motorists to access real-time petrol prices from the newly released MotorMouth app in order to chase the best deal in their neighbourhood and push the sector into trimming margins.

“This improved price transparency puts pressure on retailers to offer competitive prices or risk customers driving to a petrol station that does,” he said.

“We encourage people who are concerned about petrol prices to take advantage of these apps. Motorists have the ability to drive competition in the fuel sector literally in their hands.”