ACCC seeks explanation on petrol price discrepancies from oil majors

The Australian Competition and Consumer Commission has written to the Chief Executives of the oil companies and the two major supermarket chains in Australia seeking an explanation of the recent significant divergence of the price of unleaded petrol in Australia relative to international price movements. 

The ACCC has expressed its serious concern that a significant divergence has again occurred between the Australian retail price of unleaded petrol relative to the price of Singapore Mogas 95, the international indicator benchmark price.

Similar discrepancies between Australian retail prices and the Singapore Mogas 95 benchmark were cause for concern earlier in the year and were a trigger for the recently completed Public Inquiry by the ACCC into the price of unleaded petrol.  

The ACCC has also separately written to the oil companies and the large petrol retailers putting them on notice that it will be seeking detailed information from them as to their costs prices and profits at all levels of the supply chain.

This follows the formal price monitoring powers conferred on the ACCC by the Government on the 17 December 2007.