Slumping fuel prices not seen at the bowser

Motoring groups have slammed the fuel industry for price gouging at a time of medical and economic uncertainty.

Bowser petrol prices are far from reflective of the wholesale price. Picture: Supplied

Motoring groups have slammed the fuel industry for price gouging at a time of medical and economic uncertainty.

While wholesale fuel prices have plummeted in recent weeks, prices at service station pumps have remained high.

The wholesale price of petrol has fallen to about $1 a litre in cities on the eastern seaboard, the ­lowest price in four years, but ­motorists are still being slugged up to $1.60 a litre.

RACQ spokesman Paul Turner said many city retailers had raised prices similar to how they would during the normal fuel price cycle, even though wholesale ­prices were low.

“They are looking at the high $1.50s, which in itself is a ridiculous gouging because the same oil ­prices a year ago led to peaks of around $1.35,” Mr Turner said.

“There’s just no excuse.”

He said any bowser price above $1.45 was “completely ridiculous” and should be closer to $1.

“Let’s be frank about this: there shouldn’t be a peak this time,” Mr Turner said. “It is time, during this current crisis, that you throw the cycle out the door.”

Prices of Brent crude oil from Singapore have dropped to as low as $US25, prices not seen since 2003.

“It’s an opportunity to do the right thing, to not have a peak and keep prices low,” Mr Turner said.

“The industry should have a good, hard look at itself. It’s not doing itself any favours at the ­moment by obviously gouging motorists at a time when economic concerns are so prevalent.”

Josh Frydenberg last week wrote to Australian Consumer & Competition Commission boss Rod Sims asking him to hold fuel retailers to account.

Fuel prices in regional areas, which are not usually prone to ­cycles, averaged about $1.30 a litre on Friday. In the capitals, prices varied from about $1 a litre in areas where service stations were prevalent to $1.59 in quieter suburbs.

The average price of unleaded ethanol petrol in NSW on Friday was $1.33 a litre. In Victoria, the highest city price was $1.59, while the lowest was 94c. Brisbane prices varied from $1.13 to $1.60.

Mr Turner urged motorists to make use of any of the many apps and websites to shop around.