Research conducted by the Australian Competition and Consumer Commission (ACCC) has revealed that average petrol prices have hit a four-year high.
ACCC discovered that prices had increased by seven per cent in the past three months, standing at around 145c per litre in Australia’s largest cities.
It found that annual average prices for petrol in the five largest cities in real terms fell steadily between the 2013-14 and 2016-17 financial years, but in 2017-18 they increased overall by nearly 10 per cent compared with the previous year.
Chair of ACCC, Rod Sims said the major factors driving higher prices were an increase in international crude oil and refined petrol prices, and a lower exchange rate with the United States dollar.
“The OPEC cartel in particular continues to have a damaging effect on Australian petrol prices,” Mr Sims said.
“In late-2016 OPEC, and some other crude oil producing countries, agreed to cut production. This restricted supply into the market, which has clearly started to bite through, steadily increasing petrol prices in the past financial year.”
He said a weaker Australian dollar also increased costs for wholesalers buying petrol for the Australian market, which flowed through to consumers who paid for it at the pump.
He urged motorists to make use of the free fuel price apps and websites and to shop around for the lowest prices on petrol.
“By shopping around for low prices, motorists send an important signal to retailers that they need to price their petrol competitively to get customers in the door,” Mr Sims said.
The ACCC’s 55-page research report can be accessed at this PS News link.
