Watchdog growls at fuel sellers on ‘costs’

AUSTRALIA’S competition watchdog has vowed to bolster efforts to improve petrol price transparency amid mounting concerns fuel retailers are using rising compliance costs as a smokescreen to fatten their profits.

It comes as consumer advocates question the value of government-run fuel price reporting schemes, arguing they risk benefiting retailers over motorists.

Speaking at an industry forum yesterday, Australian Competition and Consumer Commission chairman Rod Sims said financial figures provided by the major retailers fuelled the ACCC’s belief that rises in their profit margins had been “well in excess” of any government-imposed compliance costs.

Those imposts – including for the installation of equipment to capture petrol vapours emitted from tankers and at the bowser – legitimised an increase in margins, Mr Sims said, but not to the extent that has been seen.

“Based on our calculations, each extra cent per litre on the price of petrol costs consumers across Australia a total of around $180 million a year,” he told the Asia Pacific Fuel Industry Forum in Melbourne.

“In this time of higher margins, the ACCC will be doing more and more to push transparency, so it is clear to consumers which companies are charging more and which are discounting.”

Mr Sims said motorists could no longer rely on a regular price cycle, hence the importance of price-watch apps and websites such as MotorMouth and GasBuddy.