High fuel price cycles ‘prolonged’, according to NRMA survey; calls for ACCC probe

Published 31/12/2024, 10:58 am
© Reuters.  High fuel price cycles ‘prolonged’, according to NRMA survey; calls for ACCC probe

New data from the National Roads and Motorists Association (NRMA) ranks Australian capitals on the price motorists can expect to pay at the bowser.

Perth cheap; Brisbane, Canberra fleeced

Perth emerged as the cheapest capital city for fuel at 181.4 cents per litre.

Topping the list was Canberra, where motorists were stung for an average of 196.3 cents a litre, while Brisbane motorists were the second most fleeced, paying an average of 195 cents per litre.

Sydney and Melbourne followed with average prices of 191.1 cents and 190.3 cents per litre, respectively.

Queensland's Transport Minister Brent Mickelberg has joined calls for an Australian Competition and Consumer Commission (ACCC) inquiry into petrol pricing, highlighting concerns over artificially inflated costs.

The NRMA claims these price discrepancies could cost the average Australian family an additional A$426 annually compared to families in Western Australia.

Extended price cycles

Petrol price cycles, a major contributor to cost variations, have become increasingly prolonged.

In Queensland, the Royal Automobile Club of Queensland (RACQ) revealed that the cycle now stretched up to 38 days, compared to just seven days in Perth.

This shift leaves Brisbane drivers with fewer opportunities to secure cheaper fuel, exacerbating cost-of-living pressures.

The NRMA has criticised these extended cycles in Brisbane, Sydney and Melbourne, saying the inflated prices are harmful to families and the broader economy.

ACCC urged to investigate

It has urged the Federal Government to direct the ACCC to investigate the matter.

Queensland's Transport Minister expressed support for such an inquiry, calling for lasting solutions while cautioning against measures that might inadvertently lead to long-term price hikes.

A federal treasury spokesperson assured the public that the ACCC continued to monitor petrol prices closely, noting a recent decrease in the five major Australian cities.

Industry representatives, however, claim that market dynamics, not manipulation, are behind the prolonged cycles.

Mark McKenzie, CEO of the Australasian Convenience and Petroleum Marketers Association, said the longer cycles reflected broader cost-of-living adjustments rather than price control.

With cost of living pressures mounting, drivers and policymakers alike will be watching closely for any action on petrol pricing reform in 2025.

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