Australians aren't cheated at petrol pump: ACCC

[Dont be a lemon]

Australians aren't cheated at petrol pump: ACCC

Australian petrol prices are relatively low by international standards, a report by the competition watchdog's petrol commissioner says.

The Australian Competition and Consumer Commission (ACCC) report also found the record high petrol prices in 2007/08 failed to deliver big profits to petrol retailers, who were hit hard by sharply rising operating costs.

The ACCC's Joe Dimasi has published the first of three annual reports of petrol price activity commissioned by the Government.

Mr Dimasi says a mid-year spike in petrol prices was due to an increase in the international benchmark price.

"Petrol prices are of great concern to the Australian public," he said in a statement.

"This has particularly been the case in the past year as price of petrol increased substantially reaching a high of about 163 cents per litre in five major metropolitan cities in July before falling back to an average of 105 cents per litre in mid-December.

"The report has enabled the ACCC to explore further the factors that have influenced petrol prices this year and the industry's profits, costs and revenue."

The report found that the rises and falls of Australian petrol prices closely followed the corresponding changes in the price of Singapore Mogas 95.

This finding refutes the persistent claim levelled at petrol retailers in Australia that they fail to pass on cuts in the price of oil at the bowser.

The report did identify two instances where prices in Australia were higher than the benchmark would have indicated, but in each case there were explanations that did not suggest any foul play from petrol companies.

Mr Dimasi says competition in the wholesale petrol market is a concern, but there is still active price competition among service stations that sell to the public.

Because the big oil companies have consolidated their places in the industry, it is difficult for new players to challenge them in the wholesale sector, the report found.

"Developments in this sector are being monitored closely," Mr Dimasi said.

"The ACCC wants to see competition in the wholesale sector encouraged and not diminished."

The report also examined the differences between prices in metropolitan and rural areas. It found petrol in the country costs an average of six to seven cents more per litre because of transport costs, lower volumes and a lack of competition.

http://www.abc.net.au/news/stories/2008/12/22/2452961.htm

Interesting.

 

[Ripper]

I was in Malaysia last week and the prices were

92 unleaded MYR1.70 (ringett)

Diesel MYR1.70

97 unleaded MYR1.80

A$1.00 was worth MYR2.26 and there were letters in the paper complaining that the gov't was raking in 6M ringett / day in taxes,

 

[Eagle87]

I was in Malaysia last week and the prices were

92 unleaded MYR1.70 (ringett)

Diesel MYR1.70

97 unleaded MYR1.80

A$1.00 was worth MYR2.26 and there were letters in the paper complaining that the gov't was raking in 6M ringett / day in taxes,

The issue in Malaysia is driven by the government being the price setter. in 2007 (early) they just jacked the price up by 35% on one day.... and it was a fair bit lower than 1.70 then....

I believe the price has been maintained somewhat even though world prices have dropped....

Petronas do have a nice office though