ACCC urges Aussies to 'fight back' against rising petrol prices

Sydney Morning Herald
February 23 2018

Petrol prices have hit their highest point in two years and it is time for Australians to fight back, the Australian Competition and Consumer Commission says. 

In its latest quarterly petrol report, the ACCC found that average petrol prices in Australia’s five largest cities jumped significantly in December last year and that gross retail margins have reached their highest levels since the ACCC began monitoring them in 2002.      

This is of little surprise to aviation worker Simon Grubb who fills the 90 litre tank on his Landcruiser twice a week.

Filling up with diesel at a Metro station in downtown Melbourne, Mr Grubb said he was "very aware" of prices and has favourite petrol stations.

"I'll always fill up [at the same petrol station], it's about eight cents cheaper," he said.

Petrol prices in Melbourne, Sydney, Brisbane, Perth and Adelaide spiked more than 10 per cent in the last quarter of 2017, rising 12.6 cents per litre to an average of 135.1 cents per litre.

Sydney prices rose 12.5 per cent in the December quarter of 2017 to 133.6 cents per litre, while Melbourne recorded a 10.6 per cent increase to reach an average of 136.3 cents per litre.

ACCC chairman Rod Sims said it was time Australians pushed back against high fuel prices.

“Motorists can fight back against these high prices by using fuel price websites and apps to shop around. Consumers can save significantly by timing their purchases during the price cycle, which encourages retailers to be more competitive,” Mr Sims said.

“Retail prices in the larger capital cities can vary by around 25 cents per litre to 30 cents per litre near the time that price cycles are increasing.”

Mr Sims said the average gross retail margins are now more than four cents per litre higher than the average over the last 15 years, creating an additional $750 million hit to motorists.     

“Petrol retailers’ margins are the highest they have ever been and motorists are paying for it,” he said.      

However finding the cheapest price is not so easy for the less tech-savvy consumers.

James Beggs, an 88 year old pensioner, said he tried to find the lowest petrol prices to fill his 1991 Honda Concerto, but doing so was difficult without a mobile phone.

"I try to look for the cheapest prices," he said, but added that sometimes "you just need petrol".

The ACCC said part of the increase in fuel costs is due to rising Brent crude oil prices, which have surged to highs not seen since 2015, as the Organisation of the Petroleum Exporting Countries cartel cuts oil production levels globally, as well as the falling Australian dollar, which impacts prices as refined petrol is bought and sold in US dollars on the global markets.

These two factors have played a major role in lifting the fuel price, but are not the sole reason for its rise.

“The ACCC accepts that some of the increase in gross retails margins has been due to these increased costs; the information we have, however, indicates that this contribution does not explain the bulk of the increase,” Mr Sims added.

Brisbane has the highest prices across Australia’s major cities, paying an average of 3.3 cents per litre more over the last eight years than any other city.

In 2017, Darwin, Hobart and Canberra petrol prices were consistently higher than the five largest cities, with Hobart typically paying the highest fuel costs compared to all other capital cities.

The ACCC has already attempted to put a halt to surging fuel prices by opposing BP’s proposed acquisition of Woolworth’s network of petrol stations, citing the likelihood of less competition in the marketplace if the acquisition was carried out, and that fuel prices would rise.

Melbourne University commerce student Sarah Seeri said she avoided purchasing petrol where possible opting instead to catch public transport.

"I'm much more aware of how much petrol I'm putting in when the prices are higher," she said.

"I try to avoid [price spikes] in general.

We have the technology to bring these leaches to their knees.

With apps and mobile phones it could be achieved very easily.

But there is only one insurmountable thing that stands in our way EGO.

Most will not abide by the rules because for over the last 30 years or so we have grown accustom to not caring about the next bloke and his family.

Look after yourself the next guy doesn't matter this has been the lesson the oligarchy have bestowed upon us and we have taken to it like fish to water.

For the people as one would be a fearsome creature to behold.

If we boycotted BP or Mobil for one day they would start crying, for a week they would bend over and hand us the Vaseline.

Dr Mengele wrote on Feb 24^th, 2018 at 11:33am:


They never have ... why should they start to now?

They are toothless tigers when it comes to Fuel Companies.

They only ever pick their mark. Like the ATO 

[quote author=Oh_Yeah link=1519433926/5#5 date=1519437051]It's the duopoly of Woolies and Coles that have caused rising profit margins for fuel retailers.
The 4c discounts have driven many independent operators out of business and now there is less competition.
In particular I have noticed Coles petrol consistently more expensive than other operators.[/quote]


We are some what to blame as well. We take the bait...every time. Stupid humans.

Like posted above. If we avoided all the big names they would shite their pants and reduce prices to get us back. Actually that is what they will do at the end of this cycle. Drop the guts out of it and watch the bowser rage begin.



Oh...and you didn't think the ACCC worked for us did ya's?  ;D

Gnads wrote on Feb 24^th, 2018 at 11:07am:


fill-up on a Tuesday is what they usually tell everyone LOL

What a lof of sh.t.

Sir lastnail wrote on Feb 24^th, 2018 at 12:23pm:



Hi Nail,
it happens when you get private corporations in control of essential services.
You can't do anything without their petrol.
You can't go to work or do your shopping -
they've got you by the balls and can charge whatever they like & you'll still pay.

Why is the price of petrol so important? Are people incapable of shopping around?

freediver wrote on Feb 24^th, 2018 at 1:05pm:


Good question, FD. I think it has something to do with WWII, the post-war boom, the OPEC oil crisis, the rise of supply-side economics and global development.

But that's just me.

Dr Mengele wrote on Feb 24^th, 2018 at 11:33am:


Absolutely not !

What we need to do is get everyone to boycott a particular brand for two months.
Then do the same to another brand
Then again to another brand.

The sudden loss of income for two months would put them to the wall.

And we could tell the this woukd continue until they brought prices down across the board.

But
Remember, govco tax petrol 75% plus GST
We need to send a message to the PARASITES that we are not happy.

Bobby. wrote on Feb 24^th, 2018 at 1:07pm:




I know I rush in with my woollies discount card and when the price comes up i have saved less thana dollar..... we have no choices in ACT bobs.. no independents left that I know of.....so its pay up or walk... they hold all the aces.

cods wrote on Feb 24^th, 2018 at 2:42pm:


Near where I live there is an independent then more or less in 50 metres there is a big Shell. The independent is poky but cheaper than Shell after the 4 cent discount. I don't shop at coles or woolies but even if I did I would not use Shell.

7-11 and the independents in my area sell Mobil so the actual fuel is no different.

RightSaidFred wrote on Feb 24^th, 2018 at 3:17pm:


In my weekly travels there is one of those budget petrol places that is 25c less than my local

Not hard to plan ahead and fill there

Mattyfisk wrote on Feb 24^th, 2018 at 3:29pm:


It's only borderline racist when you call AyRabs dirty because it's true

UnSubRocky wrote on Feb 24^th, 2018 at 3:48pm:


Do you walk to KFC?

UnSubRocky wrote on Feb 24^th, 2018 at 4:01pm:


Good stuff.

Gordon wrote on Feb 24^th, 2018 at 3:36pm:


No worries. You're no longer a containerist. From now on, you're a borderline racist.

Bobby. wrote on Feb 24^th, 2018 at 1:07pm:


People drive that far every day, past several petrol stations. Petrol prices are advertised like no other product, yet for some reason people still think they are incapable of shopping around and need the ACCC to intervene on their behalf.

Bobby. wrote on Feb 24^th, 2018 at 12:19pm:


There is no obligation to buy their fuel.

You can walk, catch public transport, or call up an Uber.

Stop whinging.

Seriously guys.

https://motormouth.com.au/

What people don't seem to understand is that petrol tanks hold petrol that has a certain weight. If you drive around with a 40L tank, a full tank would mean that you are driving around with 40kg of weight. There are so many people out there that drive around until they have 2/3rd a tank full of petrol. Then they go to top up. If they go and fill up their car when the tank reaches 10L, then they would be driving around more fuel efficiently.

The_Barnacle wrote on Feb 25^th, 2018 at 11:08am:


Is that price consistency Melbourne wide?

In Sydney there are areas that are always much lower, lihe 15-25c. I can easily time my fills when I'm near the cheaper options.

The_Barnacle wrote on Feb 25^th, 2018 at 11:08am:


You don't need to do extra driving to shop around. You are not going to drain your fuel tank on the way to the corner store.

Valkie wrote on Feb 24^th, 2018 at 2:41pm:


I generally use Mobil from either an independent or 7-11 as they are cheaper not even sure what your logic is. They should be punished for being cheaper ?

Sir lastnail wrote on Feb 24^th, 2018 at 12:23pm:


No use having electric cars ....  there won't be enough generated power to recharge the batteries.

And as if the price of electricity isn't up there with fuel prices in ripping off consumers.

Gnads wrote on Feb 25^th, 2018 at 5:44pm:


Gnads is welcome to seek asylum there.

The price of fuel is based on the Singapore Spot Price I believe.

What astounds me is that fuel that is bought at a certain price in unloaded into the tanks at service stations.

That fuel is not on sold to us just based on it's purchase price .....well before the tanks are empty the price of that fuel will Yo Yo on the Singapore Price over night.

That's an out & out theft.

Bobby. wrote on Feb 24^th, 2018 at 1:07pm:


No wonder you can't hold a job, Bobby. Your head is in the past and your anus in the present.

Australia converted to metric measures in 1974.

You wouldn't know you had driven ten miles unless you are driving a pre-1974 car (44+ year old bomb) with the odometer in miles.

Gnads wrote on Feb 25^th, 2018 at 5:57pm:


No its the Oil price, but local retailers can choose when to invoke a price rise or drop.
The only thing we can claim is collusion on this timing.