Surveys of petrol sites conducted this morning by the Australian Competition and Consumer Commission showed that petrol prices fell by an average of 1.7c a litre in the five major capital cities.
"In Sydney the average unleaded retail price fell from 97.4c on Thursday to 95.5c at lunchtime Friday", ACCC Chairman, Professor Allan Fels, said today. "In Melbourne it fell from 91.1c to 89.1c and in Brisbane from 87.8c to 85.9c and Adelaide from 91.7c to 90.5c and Perth from 94.5c to 93.2".
Average unleaded petrol retail prices in capital cities - 28 February to 2 March 2001.
| Date and time | Sydney | Melbourne | Brisbane | Adelaide | Perth |
|---|---|---|---|---|---|
| 28 February (12 pm) | 97.9 | 92.0 | 88.6 |
91.8 |
93.6 |
| 1 March (9 am) | 97.6 | 90.9 | 88.0 |
91.4 |
94.5 |
| 1 March (12 pm) | 97.4 | 90.8 | 87.8 |
91.5 |
94.5 |
| 1 March (3 pm) | 97.1 | 91.5 | 87.6 |
92.1 |
94.5 |
| 1 March (Average) | 97.4 | 91.1 | 87.8 |
91.7 |
94.5 |
| 2 March (9 am) | 95.7 | 89.4 | 86.0 |
90.7 |
93.2 |
| 2 March (12 pm) | 95.5 |
89.1 |
85.9 |
90.5 |
NA |
| Variance – 01 March (Average) | -1.9 | -2.0 | -1.9 | -1.2 | -1.3 |
Based on data supplied by Informed Sources Pty Ltd
"The ACCC will report as soon as possible on prices in other capital cities and other locations in Australia.
"Prices in regional Australia are being monitored extensively but figures from this monitoring will not be available until next week as they are not monitored on an overnight basis.
"The signs so far are that the excise reduction is being passed on. The fall is 1.50c per litre which means, with a 10 per cent Goods and Services Tax, the total fall should be 1.65c per litre.
"The ACCC has examined petrol price data across Australia this week to see if there has been any anticipatory price behaviour, that is, whether prices rose in advance of the expected reduction. There is no obvious evidence of anticipation occurring with oil companies margins remaining largely unchanged.
"The ACCC will be closely scrutinising prices for a considerable time ahead to make sure there is no subsequent attempt by the industry to pocket the reduction in excise. In this regard the ACCC has for some years closely observed the relationships between an 'import price indicator' and actual prices paid by motorists.
"The import price indicator (which includes taxes and excises) has been reduced by 1.65c a litre as from midnight and the ACCC will be closely scrutinising prices to ensure the normal relationship with the indicator continues in the weeks and months ahead.
"The ACCC is monitoring 4,000 petrol sites. This has increased from 2,500 petrol sites with the increase being to more effectively monitor the new tax system changes including the latest excise reduction. Of these, 2,500 sites are in the metropolitan areas. The sites are being monitored up to three times per day, five days per week. Sites are also being monitored on weekends, twice on Saturday and once on Sunday. The remaining 1,500 sites are in regional Australia covering 150 country and regional towns, representing and 70 per cent of the regional population. These sites are being monitored twice weekly. There is a total of around 9,000 badged petrol sites in Australia.
"The Government's announcement about special powers available to the ACCC relate to the powers based on Part VB of the Trade Practices Act 1974 and are the same powers that have been used in relation to Goods and Services Tax pricing. These include penalties of up to $10 million per company and $500,000 per individual involved in price exploitation and the power to issue adverse publicity notices about companies involved in price exploitation. The ACCC will not hesitate to use these powers".
Price volatility and fluctuations
Professor Fels said that motorists are angered by the high degree of volatility of petrol prices.
"The Government has asked the ACCC to investigate whether the weekly volatility of petrol prices can be reduced. The ACCC will consult with industry members, consumer groups and interested State Governments on the subject.
"Other things being equal, it is desirable that the volatility be reduced", he said. "However this should not be at the expense of higher prices on average to consumers or reduced competition between oil companies".