Petrol prices

Queensland Treasurer Tim Nicholls wants changes to the way fuel prices are monitored because Queenslanders pay up to 10¢ more a litre than other states.Mr Nicholls says he has written to the Commonwealth urging it to pressure the Australian Competition and Consumer Commission to change the way it monitors wholesale fuel pricing and investigate why prices are higher here."We are concerned that Queenslanders are getting a raw deal on fuel prices and we need an explanation of why drivers here are being forced to pay more for their petrol," Mr Nicholls said.Motorists rightly question why they pay more to fill their tank here than in some other states"We're asking for the ACCC to institute an in-depth review of petrol pricing, starting in Queensland and focusing on both metropolitan and north Queensland markets."It should also look at whether there are any impediments to fuel price competition in Queensland." But he would not commit to bringing back the 8.4¢ a litre fuel subsidy scrapped by the Bligh government.The Opposition also refused to commit to bringing back the subsidy but said something needed to be done to address bowser inequity."Motorists rightly question why they pay more to fill their tank here than in some other states," an Opposition spokesman said. "What won't help is Tony Abbott's fuel tax, which he didn't tell anyone about prior to the last federal election." Across southeast Queensland, fuel prices have hit a four-year low - with the average price of unleaded in Brisbane yesterday sitting at $1.19 a litre, down 30¢ a litre on the same time last year.However motorists are still paying much more than in other states - $1.13 in Sydney and Melbourne and $1.10 in Adelaide.General manager of monitoring group FUELtrac, Geoff Trotter, said the dominance of Coles and Woolworths outlets was "pretty strong and they have chosen not to go as low as they have had to in other states".That had been exacerbated by the purchase of independent chains Matilda, Neumann and Choice by the global Puma Energy company, he said."You have what look like independents in Brisbane but they are owned by one large group which does not discount anywhere near as aggressively as when they were small independent groups." Puma declined to comment.In his letter to Federal Small Business Minister Bruce Billson, Mr Nicholls says the Government has concerns about the timing of cuts to the oil price being passed on to Queenslanders.Mr Nicholls said following the letter, Mr Billson had issued a directive to the ACCC to step up its monitoring. But he said he would continue lobbying to ensure the ACCC acted quickly.

Sydney motorists will enjoy the cheapest Christmas petrol prices in five years, with fuel expected to drop as low as $1.10 a litre this week.

Melbourne's unleaded petrol prices have fallen to fresh four-year lows in a boon for Christmas holiday drivers.

Senator Ricky Muir has slammed the Federal Government's plan to raise the tax on fuel and says motorists shouldn't be underwriting the rest of the economy.The Federal Government yesterday announced it would raise fuel excise by indexing it to inflation, adding between $10 and $16 (from a Toyota Corolla to a Ford Territory) to the price of the average yearly fuel bill.But Senator Muir says the tax hike is a broken promise and should be reversed immediately. "Whatever happened to 'no new tax under a government I lead'?" said Senator Muir. "The Senate rejected fuel tax indexation because, I believe, it listened to the people of Australia, and the government is supposed to represent the will of the people."Senator Muir is also concerned about how little revenue from fuel tax is funnelled back into roads. Of the $14.9 billion raised in fuel tax last financial year, just $5.4 billion was spent on roads. Of the forecast $15.2 billion in fuel tax revenue this financial year, just $4.8 billion will be spent on roads."Rather than introduce indexation, there should be a guarantee that a certain percentage should be spent on roads," said Senator Muir. "The motorist already pays dearly, they shouldn't have to subsidise other areas of the economy. Most of the money raised from fuel excise goes into consolidated revenue and that's not fair." The fuel tax increase is due to come into force on November 10.If the bill is rejected later, the extra money raised could go back to the fuel suppliers. "If there is a way to stop it we will," said Senator Muir, who also warned the Abbott Government that the fuel tax issue would likely sour the already rocky relationship with the Senate."This is not a positive step in gaining the confidence in the Senate," he said.

Motorists preparing for their New Year holidays are being urged to shop around to avoid being severely bitten at the bowser. Figures show the gap between the highest and lowest prices charged in Sydney for ordinary unleaded petrol (ULP) has reached record levels.The 7-Eleven service station at Greenacre was charging just $1.37.9c per litre for ULP yesterday, 29c less than the Caltex/Woolworths outlet at North Ryde at $1.66.9c.Some service stations - the Coles Express outlets at Cremorne, Cammeray, North Ryde and Annandale - were heading towards $2 a litre, charging $1.84.9c for premium unleaded petrol, which now makes up about 28 per cent of the market.The NRMA's Bowser Buster fuel search service and the Motormouth consumer fuel price search website found the average price for ULP in Sydney yesterday was $1.56.8c but NRMA spokesman Peter Khoury said it had risen to 161.6c by early evening."That is - we believe - way too high,'' Mr Khoury said. "We think that the Australian people deserve an explanation as to why this is happening.''The average price for ULP in Sydney 12 months ago was $141.3c. Mr Khoury said if a service station was charging close to 30c a litre more than a competitor it was charging itself out of the market: "The prices they are charging are far too exorbitant and unnecessary. Anyone charging $1.67 a litre (for unleaded) is having a laugh."Mr Khoury said, based on trends in petrol price cycles, the price was expected to peak on January 1 before it fell by as much as 10c a litre in coming weeks.Latest Australian Competition & Consumer Commission figures showed that, in the 30-day period ending December 29, the average daily price of unleaded petrol in Sydney fluctuated between $1.41 and $1.57. Mr Khoury said drivers who had to fill up in coming days should use the NRMA site and shop around.Read more here.

As shopper docket petrol discounts reached 40 cents per litre -- coincidentally as petrol prices reached new heights -- Australia’s peak motoring body has called on the Federal Government to give the ACCC the powers its needs to better police the industry.The call for a new inquiry into petrol prices comes a week after the Federal Government announced it would not replace the role of Petrol Commissioner at the consumer watchdog, the Australian Competition and Consumer Commission."We’ve had long enough of this pea and thimble trick by the supermarket chains," said the executive director of the Australian Automobile Association, Andrew McKellar."Motorists might get a discount at the petrol pump but they end up paying more for groceries. We need the ACCC to properly address this issue and if they haven’t got the necessary powers then it’s up to the government to make sure the ACCC has those powers."The comments by the AAA come as the ACCC Chairman, Rod Sims, today raised concerns about escalating shopper docket fuel discounts and the likely impact it was having on independent operators."Independent service stations are struggling to compete on prices," Mr McKellar said. "Let’s not kid anyone, supermarket chains are not offering fuel discounts as a measure of goodwill or charity, they will be making up the profit elsewhere in their business."Mr McKellar said discounts of 40 cents per litre or more are "unsustainable in the long term and will drive out retailers not linked to the supermarket chains".Joe Dimasi was appointed Petrol Commissioner in 2008 but he announced last week that he will not seek reappointment to the ACCC, stepping down from the role in August. The government has said it will not replace him."Australian motorists need an effective watchdog at a time when fuel prices are increasing," said Mr McKellar. "Regrettably the appointment of a dedicated 'Petrol Commissioner' appears to have been nothing more than an exercise in political window dressing -- it has been a failed policy experiment."

A new smartphone app puts the power of petrol prices in your pocket by highlighting the best and worst times to top-up - but the data is supplied by a market research firm contracted to the big oil companies. Motor Mouth has been tracking petrol prices and publishing them online since 2002 but has just released an Apple iPhone app  that pinpoints the best prices.The app costs $2.99 and takes in up-to-the-minute data from 3000 of the 6000 petrol stations across Australia. It covers all the major fuel types including E10, regular unleaded, premium 95 and 98 unleaded, LPG, diesel and premium diesel.The app also monitors the best days to buy and where prices are at in the discount cycle in each area. For example, it has been nine days since the last spike in prices in metro Sydney and the forecast is for prices to plateau over the next few days.But petrol stations have changed their discount days and are harder to predict. “It’s become difficult to know when is the best day to buy,” said MotorMouth spokesman Tim Rankin.  “It could be Tuesday one week and Friday the next.”The app nominates a target price to “buy below”. “This price is slightly higher than the average in each area but should be easy to find,” said Rankin.Although Motor Mouth declares it is “independent” of the petroleum industry, it is owned by Informed Sources, a market research firm which contracts to the big oil companies including Shell, BP, Caltex, Coles Express, Woolworths and 7-Eleven. When asked if the swings in petrol prices were justified, Rankin said: “We think it’s understandable.”When asked if there was a conflict of interest given that Motor Mouth is closely tied to the petroleum industry, Rankin said: “Not at all. The oil companies allow the data to be given to Motor Mouth and then Motor Mouth provides that information to help consumers.”This reporter is on Twitter: @JoshuaDowling  

Motorists may see petrol prices moving towards $1.70 a litre at peak times in coming months as the dollar weakens and global oil prices rise.Treasurer Chris Bowen maintains the Australian dollar's decline to US90c will be good for business confidence and manufacturers but analysts warn that households will face a cost squeeze as petrol prices rise sharply over the coming weeks.Fuel is one of the biggest weekly purchases for most households and the recently broken $1.50 a litre threshold is seen by many economists as a key stress point at which household start to cut back on their discretionary spending.This is more bad news for a retail sector already struggling against increasingly cautious consumers and the broader economy as it transitions away from the mining boom. Petrol prices are already above $1.50 a litre at the bowser in most cities and this will continue to soar as the double whammy of higher oil prices and lower Australian dollar hit home in the next few weeks, economists said.The price of oil hit a 14-month high of US$103 a barrel over the weekend on concerns about stability in Egypt while the Australian dollar dropped back to US90.6c - just above its recent 3-year low.The Australian dollar's collapse from $US1.05 over the past two months has already added 11c to the price of petrol. Last year, the national average price of unleaded petrol was $1.35 or under in all of the major cities, according to data from the Australian Institute of Petroleum.Economists are tipping the dollar will continue to drop with AMP Capital Investors putting its 12-month forecast at US86c. "There has been a clear lift in pump prices over the past two months - representing disappointing news for consumer-focused businesses," CommSec economist Savanath Sebastian said in a recent note."Higher crude prices and a substantially weaker Aussie dollar - pushing up the cost of imported fuel - are likely to see domestic pump prices rise even further in coming weeks. The higher cost of fuel will add to inflation but may also restrain consumer purchases."Retail sales figures released last week show households may already be facing a pinch and have cut back on purchases of electrical goods and eating out. New South Wales and Victoria registered falls in overall spending during May.Mr Bowen speaking on Sky News' Australian Agenda yesterday stood by his predecessor Wayne Swan's budget forecast to return the books into the black by 2015 despite fears about a slowdown in China.He also ruled out reviewing the base or rate of the GST and claims Labor has a "pro-small business" approach. "We want the Labor Party to be, frankly, a party that small business is comfortable with because we see small business as the engine room of the economy," he said.The price of oil hit a 14-month high of US$103 a barrel over the weekend on concerns about stability in Egypt while the Australian dollar dropped back to US90.6c - just above its recent 3-year low.The Australian dollar's collapse from $US1.05 over the past two months has already added 11c to the price of petrol. Last year, the national average price of unleaded petrol was $1.35 or under in all of the major cities, according to data from the Australian Institute of Petroleum. 

Petrol prices will break through the $1.50-a-litre barrier within a fortnight, after the Australian dollar slipped back below US92c. Motorists are facing the combination of higher crude oil prices and a sharply declining Australian dollar.If the dollar had stayed at the US$1.03 level that it was trading at in April, prices at the bowser would be around 9c cheaper on average, experts say. But the Aussie dollar's dive back through parity has pushed up unleaded fuel prices to their highest level in four months.The impact of higher petrol prices is expected to lift prices across the retail sector as higher transport costs for suppliers are pushed on to shoppers. The national average price of unleaded petrol rose 3.4c last week to $1.48 per litre.Darwin was the most expensive city at $1.60 per litre, with the biggest rises in Brisbane (up 8.7c to $1.53) and Sydney (up 7.6c to $1.50). Melbourne was the cheapest location at $1.45 a litre, up 1.2c, while Adelaide, Perth and Canberra were all below $1.50.CommSec economist Savanth Sebastian urged consumers to shop around, as petrol is the biggest single purchase for most households every week and another 3c is likely to be added to pump prices over the next 7-10 days.Read more: http://www.news.com.au/money/cost-of-living/petrol-prices-tipped-to-break-through-150-per-litre/story-fnagkbpv-1226668914950#ixzz2XAa7p8ii 

New research by University of New England professor of macroeconomics Abbas Valadkhani has found a quarter of servos put up prices as soon as fuel gets cheap but make "no effort whatsoever'' to bring prices down when it's expensive compared to the long-term average.Professor Valadkhani told News Limited the findings could help the Australian Competition and Consumer Commission prove we are being exploited at the bowser. "This study shows the ACCC where it needs to go do its job,'' he said.The research, published in the latest edition of the leading international journal Energy Economics, analyses more than five years of data and finds that in 28 of 111 locations nationwide, "when prices are conspicuously above the equilibrium path, retailers sluggishly lower their prices but when prices are substantially below the equilibrium values, the adjustment speed is significantly faster''.Ten of the 28 are in Queensland: Brisbane Metro, Charters Towers, Emerald, Gladstone, Gold Coast, Goondiwindi, Longreach, Maryborough, Mt Isa and Roma. Eight of the 28 are in NSW: Broken Hill, Casino, Coffs Harbour, Cooma, Dubbo, Forster, Newcastle and Port Macquarie. Canberra Metro is also identified.Four of the 28 are in Victoria: Ararat, Benalla, Bendigo and Yarrawonga.Three of the 28 are in Tasmania: Burnie, Campbell Town and Hobart Metro.The only South Australian location among the 28 is Port Lincoln.The only location in the Northern Territory among the 28 is Tennant Creek.Read the full article at: theaustralian.com.au