Petrol cheap but should be cheaper
08 November 2010
Perth motorists are continuing to be systematically overcharged for petrol, with petrol companies exploiting the current strength of the Australian dollar to increase retail margins.
An RAC analysis of figures provided by FuelWatch shows that the average monthly margins being charged by petrol companies have blown out from 3.2 cents a litre in 2009 to 5.7 cents a litre in 2010 – an increase of 78 per cent.
RAC Head of Member Advocacy Matt Brown says the petrol companies have potentially pocketed more than $30million already this year in additional profits.
“Motorists have been lulled into a false sense of complacency because overall prices at the bowser have either been stable or falling thanks to the strong Australian dollar,” Mr Brown said.
“What they don’t know is that petrol companies are cashing in on that complacency by not passing on the full savings.
“On average, every time a Perth motorist fills up the tank of a family sized car they are handing an additional $1.25 in profit to the petrol companies.”
Mr Brown said that while the retail margin for petrol fluctuates from day to day, the significant increase in average margins in 2010 becomes evident when observed over a longer period.
“The margins being charged between May and September this year ranged from 6.9 cents a litre to 7.6 cents a litre – more than double the average monthly margin for 2009.
“It is further evidence that petrol companies move quickly to pass on international price increases to motorists but are slow to pass on savings from any reduction in international prices.
“Petrol companies can get away with it because retail prices often stay the same, while in the background profit margins increase thanks to lower terminal gate prices.”
Mr Brown said the figures confirm the RAC’s strong view that the weekly fuel price cycle was re-introduced to Perth solely for the benefit of petrol companies.
“Previous work by FuelWatch has identified that retail margins go up under a weekly fuel price cycle,” he said.
“What we have is a case of history repeating itself. The cycle has helped disguise the additional margin being imposed on motorists.”
Mr Brown said all motorists should use the FuelWatch service to ensure they get the best deal possible.
The following table shows the monthly average difference between the retail price and the terminal gate price since 1 Jan 2009.
| 2009 |
Retail - TGP (cpl) |
2010 |
Retail – TGP (cpl) |
| Jan |
2.7 |
Jan |
0.4 |
| Feb |
-1.3 |
Feb |
3.2 |
| Mar |
3.3 |
Mar |
4.5 |
| Apr |
4.9 |
Apr |
6.1 |
| May |
4.9 |
May |
7.6 |
| Jun |
4.0 |
Jun |
6.9 |
| Jul |
4.5 |
Jul |
7.5 |
| Aug |
1.2 |
Aug |
7.3 |
| Sep |
4.7 |
Sep |
7.5 |
| Oct |
6.1 |
Oct |
6.3 |
| Nov |
1.3 |
|
|
| Dec |
2.5 |
|
|
Source: FuelWatch
Download the release (pdf)