The Minister for Financial Services & Regulation, Joe Hockey, has welcomed the Australian Competition and Consumer Commission's report on the effect of international crude oil price rises on the retail price of petrol in Australia.
The report showed that between January and August this year, petrol prices at the bowser rose by less than would have been expected if the full impact of the increase in world oil prices had been passed on by petrol suppliers.
The average capital cities unleaded petrol price increased by around 1.8 cents per litre less than international prices, while the average country unleaded price increased by about 3.7 cents per litre less than the rise in international prices.
The Minister said he was pleased to see the city-country price differential fall by 1.9 cents per litre.
"There has been much scaremongering about petrol prices, particularly from the ALP. This report just shows there has been no profiteering by petrol retailers.
"The NSW Labor Fair Trading minister John Watkins sought cheap publicity by accusing petrol companies of profiteering and ripping-off motorists.
"And ALP federal frontbencher Joel Fitzgibbon is wrong when he said in August that there was 'no logic, sense, rationale or justification in petrol price rises'.
"Joel Fitzgibbon and John Watkins clearly do not understand the nature of the domestic petrol retailing market."
The international price of crude oil has more than doubled since the beginning of the year, with typical crude prices rising from around $US11 per barrel in February to around $24 per barrel currently. Reduced production by the Organisation of Petroleum Exporting Countries (OPEC) has been responsible for the price rise.
The ACCC report was prepared in response to a request emerging from the Ministerial Council on Consumer Affairs meeting in August using data collected as part of the ACCCÂ’s informal price monitoring.
23 November 1999
Media contact: Matthew Abbott, (02) 6277 7230, 0413 076213
The ACCC report is available on the Minister's web site at www.minfsr.treasury.gov.au