$150m bowser rip-off
PETROL outlets are accused of ripping off motorists by millions of dollars as margins hit records highs.
The nation’s consumer cop has blasted “unjustified” profit grabbing, estimating Melbourne drivers paid $150 million too much in the past year.
An Australian Competition and Consumer Commission report reveals average gross retail margins for unleaded fuel in Melbourne reached 13.5c per litre in April to June.
It is the highest, in inflationadjusted terms, since monitoring started in 2002.
Over the full financial year, Melbourne’s average margin was 12.3c per litre, compared with a long-term average of 7.8c.
“Melbourne people during the last year have been paying 4c a litre too much,” ACCC chairman Rod Sims said.
“That amounts to about $150 million too much over the course of the year.
“The size of the margins are unjustified. There’s no doubt the are trying to maximise historical their profits and that disadvantages consumers.”
The ACCC reports on gross retail margins — the difference between retail and wholesale terminal gate prices — rather than profit. It does not account for retail operating costs.
Mr Sims said although the industry had incurred some increased regulatory costs nationwide, including new sign board rules in Victoria, he believed these would add no more than 1c a litre.
The report found average annual gross retail margins in 2016-17 were highest in Brisbane (13c per litre) and lowest in Adelaide (9.6c per litre).
The industry has denied price gouging. It has said petrol retailers typically average a 2ca-litre annual net profit.
An Australasian Convenience and Petroleum Marketers Association spokesman was yesterday unable to be reached for comment.
Mr Sims urged drivers to use fuel price websites and smartphone apps.
Buying at the best time and places could save up to $15 a tank, and pressured outlets to price competitively.