The Australian Competition and Consumer Commission (ACCC) have today published their seventh annual report looking into the prices, costs and profits of unleaded petrol in Australia.
The report, covering from July 2013 to June 2014, reveals retail petrol prices during this period were the third highest on record. The average retail price of regular unleaded petrol (RULP) in the five largest cities in Australia (Sydney, Melbourne, Brisbane, Adelaide, and Perth) was 150.6 cents per litre (cpl), the highest after the 157.3 cpl seen in 2007-08 and the151.1 cpl seen in 2005−06.
“At 150.6 cpl, 2013-14 saw the third highest average price on record in real terms. This was primarily driven by the international oil price and the Australian/US dollar exchange rate,” ACCC Chairman Rod Sims said.
“However, retail profits declined in 2013-14 – possibly as a result of ACCC action that limited the subsidy that supermarkets could provide to fuel discount offers. The ACCC was concerned these offers could have had short term effects on fuel markets and long-term effects on the structure of the retail fuel market.”
Mr Sims said the drop in the prices of international refined petrol have also played a strong hand in making Australia’s petrol cheaper.
“International refined petrol prices and retail petrol prices have each decreased by around 20 cpl since July 2014. As the international price is such a large component of the retail price, this should be a welcome relief for motorists,” Mr Sims said.
“The international price of refined petrol made up 54 per cent of the average price consumers were paying at the pump, while taxes made up 34 per cent.”
The ACCC report comes as the independent authority launches a new initiative to help Australians decide when to buy petrol.
Petrol price cycles are now available for users to examine, providing them with daily charts with average prices over the last 45 days, the duration and shape of the past five price cycles, and tips to help consumers understand the position of the current price cycle. The information covers petrol prices in Sydney, Melbourne, Brisbane, Adelaide and Perth.
“The savings that motorists can make by buying wisely are not insignificant and we hope our new buying tips service can significantly facilitate this,” Mr Sims said.
“Most motorists will be aware of the significant price jumps that occur during the increasing phase of the price cycle. Prices often jump by between 15 to 20 cpl or more. If a motorist filled up a 60 litre tank at the bottom price rather than the top price, they would save themselves up to $12.”
