For the first time in almost two years, average retail petrol prices in Australia’s five largest cities fell in the latest quarter, dropping by 10.3 cents per litre (cpl) from the June quarter 2022 to 177.7 cpl in the September quarter 2022, the ACCC’s latest quarterly petrol monitoring report says.
Despite the six-month cut in fuel excise reducing retail petrol prices in the June quarter 2022, the ACCC’s latest quarterly petrol monitoring report shows this could not prevent real (inflation adjusted) retail petrol prices reaching new 14-year highs due to international factors.
The ACCC’s latest petrol monitoring report shows that in the weeks after the fuel excise was cut on 30 March, daily average petrol prices fell by at least 39 cents per litre (cpl) in Sydney, Melbourne, Brisbane, Perth and Adelaide. In Canberra, Hobart and Darwin over the same period, prices fell by between 25 and 48 cpl.
ACCC monitoring of petrol prices has found significant falls in retail prices in the major capital cities a week after the cut in fuel excise came into effect.
The fuel excise cut, announced in last week’s Federal Budget, is being passed on in full by wholesalers through reduced wholesale prices to retailers, ACCC analysis shows.
“Over the next weeks, as petrol stations use up their stocks of fuel on which the higher excise had already been paid, we expect the reduced wholesale price to be passed through at the bowser everywhere,” ACCC Chair Gina Cass-Gottlieb said.
The ACCC notes today’s Federal Budget announcement of a six-month reduction in fuel excise from midnight tonight.
Under direction from the Federal Government, the ACCC currently monitors fuel prices, costs and profits and reports on these each quarter. The ACCC can compel refiners, importers, terminal operators, wholesalers and retailers to provide information relating to fuel prices where necessary.
Russia’s invasion of Ukraine and the OPEC cartel’s refusal to boost crude oil production, combined with recovering oil demand as countries relaxed COVID-19 restrictions, pushed February prices for both international refined petrol and average retail petrol in Australia’s five largest cities to an eight-year high.
The ACCC will not oppose Woodside Petroleum Limited’s (ASX: WPL) proposed acquisition of BHP Petroleum International Pty Ltd, a wholly owned subsidiary of BHP (ASX: BHP).
Woodside and BHP Petroleum supply domestic natural gas in Western Australia, and export Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG), condensate and oil from Australia.
“We examined the proposed acquisition closely as it would combine two of the four largest domestic natural gas suppliers in Western Australia,” ACCC Chair Rod Sims said.
Daily petrol prices on a seven-day rolling average basis in Sydney, Melbourne, Brisbane, Adelaide and Perth increased to 172.4 cents per litre (cpl) at the end of October 2021, which in inflation adjusted (real) terms are the highest prices in seven years, the ACCC’s latest petrol monitoring report shows.