Petrol prices hit 21-year low in June quarter: ACCC
Average petrol prices fell to their lowest levels in over two decades in the June quarter, but retailer margins remained a ‘concern’.
Average petrol prices fell to their lowest levels in more than two decades in the June quarter, while gross retail margins remained at record highs.
According to the Australian Competition and Consumer Commission’s latest petrol monitoring report, prices fell to a 21-year low in the June quarter in real inflation adjusted terms, as a result of the coronavirus crisis.
The average price for petrol across Sydney, Melbourne, Brisbane, Adelaide and Perth was 109c per litre for the three months through June, down 28.8c per litre on the March quarter.
“Many Australian motorists benefited from lower petrol prices over the first half of this year, but we have some concerns about the higher gross margins that petrol retailers seem to be holding on to,” ACCC Chair Rod Sims said.
Gross retail margins remained high and annual average gross retail margins increased to the highest level since the consumer watchdog started calculating petrol prices in 2002.
ACCC chair Rod Sims said it was likely that petrol retailers were increasing their margins to offset lower sales volumes which were down 27 per cent on the same quarter a year ago.
Demand for petrol dropped significantly at the height of the COVID-19 lockdown, when Australians were advised to avoid all non-essential travel.
“While less petrol being sold during COVID-19 restrictions may be a contributing factor to the record high gross retail margins, we’re not convinced that this fully explains the levels we’re seeing,” Mr Sims said.
“Owning and operating a car is a major expense at the best of times, let along during the current economic crisis, and Australian drivers want to see lower global oil prices passed on to them in a timely manner.”
In regional Australia, prices were 116.5c a litre, 7.5c higher than the average in the five largest cities.
Still, the ACCC said that the city-country divide had narrowed year-on-year, down 2.5c a litre on last year.
The drop in average petrol prices in the June quarter came after a collapse in global oil prices in late April.
“Lower crude oil prices are one of the few positives from current world events and drivers in Australia have enjoyed lower petrol prices on the back of it,” Mr Sims said.