- Aussies are being ripped off at the petrol pump as retailers hike their prices
- New report shows margins made by gas companies are the highest in 15 years
- ACCC says Australian motorists are paying too much at the petrol bowser
- Gas stations in Cairns are making 38 per cent more than others around Australia
Australians are still being ripped off at the petrol pump despite enjoying relatively cheap petrol, as gas companies hike their margins to the highest level since 2002.
A report released by the Australian Competition and Consumer Commission (ACCC) shows retail margins remain high despite average petrol price in Australia’s five biggest cities dropping by 4 cents a litre.
Margins made by retailers this year are the highest they have been since 2002, according to the report.
Australians are being ripped off at the petrol pump according to a new report from the ACCC
This chart shows the average retail margins in Australia’s five biggest cities in blue
ACCC chairman Rod Sims said he believes motorists should be paying less for petrol.
‘While motorists are enjoying the cheapest petrol since 2002, we believe prices should have been even lower given the continuing high gross retail margins,’ Mr Sims said.
Retail hike-ups for 2016-17 were about 12 cents per litre in Melbourne and Perth, the highest in 15 years.
Petrol prices in Brisbane were the highest of Australia’s five biggest cities, with the average cost in the city being 3.3 cents per litre higher than the average for Sydney, Melbourne, Perth and Adelaide.
Increasing costs for retailers especially in New South Wales have contributed to the increased margins but Mr Sims said they do not fully explain the sharp jump.
Regional areas were also affected by high margins.
16 per cent of petrol prices in Australia are made up of ‘other costs and margins’
‘Motorists in Launceston, Armidale and Cairns are paying too much for petrol,’ Mr Sims said.
‘We encourage people to use fuel price apps to locate petrol stations in their area with relatively lower prices.’
Petrol stations in Cairns were making 38 per cent higher average profits than others around the country.
Drivers are enjoying the cheapest petrol prices since 2002 but could be paying even less