RAC accuses fuel industry of not dropping prices fast enough

23 October 2008

The RAC is accusing the fuel industry in WA of dragging its feet in reducing prices and is calling on them to give consumers a break at the bowser.

The RAC’s Manager Vehicle Policy Mike Upton said the retail price of ULP was not dropping at a comparable rate to the price of oil and the industry was cashing in to the tune of a nearly a quarter million dollars a day.

“The average price of ULP in the metropolitan area tomorrow is about 143 cents a litre but a fairer price would be around 138 or 139 cents,” Mr Upton said.

The price of oil is dropping, with the Tapis price (which the Australian fuel is based on) at US$72 a barrel compared to US$107 at the same time last month.

“While the price of oil has dropped about $35 a barrel in the past month the average price of ULP has only dropped about 5 cents per litre,” Mr Upton said.

The retail margin placed on fuel has also jumped overnight from 3.5 cents per litre to almost 9 cents. The RAC considers a fair margin to be about 4 cents.

“Anyone buying fuel in the metropolitan area today should not pay more than 141 cents a litre, while the average price is about 143 there are still service stations selling for less,” Mr Upton said.

To find out where the cheapest petrol is visit the FuelWatch website.

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