ACCC continues to monitor petrol prices

The Australian Competition and Consumer Commission is continuing to monitor fuel prices, ACCC Chairman, Professor Allan Fels, said today.

"Since the beginning of December there have been some positive developments in the factors that affect fuel prices in Australia," he said.

"In the first week of December the Australian/US dollar exchange rate was at its highest level since the end of September 2000.

"In addition, in the second week of December, the price of Singapore refined product – the international benchmark used by the oil companies to establish the retail price of petrol in Australia - was at its lowest level since the end of April 2000.

"These developments, if sustained, should lead to lower petrol prices, which will come as relief to all motorists".

There are other factors that will influence petrol prices over the coming weeks. These include: the regular price cycle, the level of current and ongoing price support provided by the oil companies and the short term demand and supply factors.

"The ACCC has an extensive petrol price monitoring program covering around 4,000 retail petrol stations throughout Australia. The ACCC will be closely examining movements in prices over the coming weeks".

The price exploitation provisions of the Trade Practices Act prevent corporations from increasing their net dollar margins as result of the New Tax System changes.

"The ACCC monitoring will be seeking to ensure that the fall in international prices and the improvement in the exchange rate is passed on".