Some analysts say the variation in petrol prices in Sydney across the week, which can be as much as 13 cents per litre for standard unleaded, is proof the market is completely transparent, so retailers can see very easily, from price boards or online prices, what the competition is charging and respond with lower or higher prices. Others say it is evidence of collusion on prices.
To view the data on price difference before and after the announcement of the ACCC inquiry into fuel prices, click here.
What do you think?
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Clearly there is some form of collusion going on. It has been happening for years.
You see it before the holiday season and you see it before the weekend when they raise petrol prices.
Unless someone like the NRMA stands up and shouts, we hardly ever see the fuel price reflect the market price, even when there is a major drop in crude oil pricing.
The only way to fix this is to stop buying fuel and find better forms of transport.
I’d be surprised if anyone was actually surprised by this!
Maybe collusion is common knowledge on the streets but it’s something oil companies and petrol stations refuse to acknowledge.
The question is though, can anything be done with these new stats?
Is the ACCC really going to do something with the results of their investigation or is it simply going to be swept under the carpet once again.
Blind Freddy can see that there is collusion amongst the oil companies and petrol resellers. One confounding issue is, when the price of crude oil rises, petrol prices rise immediately, yet when the price of crude oil drops, petrol prices don’t appear to drop until a week or so later. I guess even Pauline Hanson could be forgiven for saying “Please explain”.
Should this even be up for discussion? If there wasn’t some shifty business going on, there wouldn’t be a ‘cheap’ day of the week and an ‘expensive’ day of the week, and prices wouldn’t mysteriously rise when there’s a long weekend. I don’t think there’s much anyone can do about it.
I’m in the USA and we face some of the same issues as you all do – especially the one where stations will be quick to raise prices by upwards of 20 cents per gallon (about 4 cents per Litre or so), but price drops are usually in the range of 3-5 cents at a time.
Of course, our fuel prices are appreciably lower (average price here is currently US$3.091/gal (81.7¢/L) locally and US$2.812/gal (74.3¢/L) nationally). However, every time that the government here have looked into collusion with the oil companies, they’ve found the same thing – it is the market that decides the price of gasoline and the oil companies, mostly as a result of them not having to pay more for processing, etc. are reaping the benefits. It also doesn’t hurt that there are some states where there is a required markup of upwards of 9% on the market price.
Sephyroth
http://www.sephyroth.net
Clearly something is going on – there are too many coincidences. Petrol is an area which we are so vulnerable in and te Oil companies are definitely taking advantage.
I also find it interesting (and as an owner of a diesel powered car) that with all the interest around fuel prices at the present the petrol price is very low, but the diesel price is still high. Generally the difference for diesel is +6-8c at present it is +17c. Ratbags!
Could you please explain why in a period of only 3 1/2hrs the price of unleaded fuel went from $1.21 to $1.31 at the caltex star service station MACHINTOSH ST. FORSTER.We were in this period of time in TAREE where we bought fuel for $1.19! where is the justification.?????????????
Living in a rural area we get fleeced even more – by an average 10cents a litre extra! (Wauchope) Just when you thought Ned Kelly was no longer around… The fuel station says that the cartage (transport costs) are to blame. My neighbour and I one day worked out for the average tanker it would add around 1 cent a litre, so no prizes for guessing about the other 9 cents…
Why is Diesel so expensive, when compared to ULP its somewhat unrefined and as for the LPG conversion rebate, just wait till the LPG subsidy comes off! Then you’ll here even more screaming. Ah yes, colusion one, colusion the next…
PS/ Why is fuel on the New England Hwy north of Walcha subsidised and no other rural areas, we have no public transport available yet our taxes go towards running Sydneys excuse for PT! Not Fair!
LPG prices appear to be rising even when petrol prices are coming down. From memory, I started buying LPG in 2003 when it was around or less than 30cents per litre at a time when petrol was near or more than $1.00 per litre. Now LPG is averaging 50 – 60 cents a litre when petrol is around a $1.10 – 1.20 per litre making the increase in LPG price disproportionate to petrol prices.
As LPG is widely understood to be byproduct of petrol refining should the LPG price reflect changes in petrol prices. There is also a regular price hike in LPG around November to February and this is apparently due to demand in the Northern Hemisphere during winter. It appears unreasonable that this should impact on Australias ‘ prices.
With oil companies annnouncing record profits each year, long term monitoring of petrol/fuel pricing would be greatly appreciated.
<p>I agree with Ian Strawbridge. Living in Albury – rural NSW – we experience ridiculously inflated petrol prices as a general rule. Then comes a holiday or just an ordinary weekend and they soar beyond the hip pocket. Let’s have a fair go for all! Get fairdinkum and put a cap on petrol prices .. I say!!