The Australian Competition and Consumer Commission (ACCC) says petrol retailers are beginning to pass on the Budget’s fuel excise cut.
In a statement, the ACCC said its monitoring of petrol prices found significant falls in retail prices in the major capital cities a week after the cut in fuel excise came into effect.
Chair of the ACCC, Gina Cass-Gottlieb said the Commission’s analysis showed the excise cut was being passed on in full by wholesalers through reduced wholesale prices to retailers.
“Over the next weeks, as petrol stations use up their stocks of fuel on which the higher excise has already been paid, we expect the reduced wholesale price to be passed through at the bowser everywhere,” Ms Cass-Gottlieb said.
She said that, between 29 March and 5 April, average daily regular unleaded petrol prices fell by between 25c per litre and 27c per litre in Sydney, Melbourne and Brisbane; by around 31c per litre in Adelaide; and by 35c per litre in Perth.
“Already the reduction in excise has been largely passed on in lower prices at the bowsers in these cities,” Ms Cass-Gottlieb said.
“Despite the various factors impacting the fuel price, our analysis indicates that clearly a major part of the reduction in excise has already been passed through in the major capital cities.”
She said prices had also fallen in the smaller capital cities of Canberra, Hobart and Darwin, dropping by between 19c and 24c per litre so far, while prices in many regional centres were also lower.
“It will take some time for petrol stations with lower turnover to use up existing stocks of petrol and diesel, and restock with fuel at the reduced wholesale price that takes account of the excise cut,” she said.
“We will continue to monitor the petrol prices to determine how the cut in excise is being passed on,” Ms Cass-Gottlieb said.
