Acting Treasurer and Minister for Finance and Administration, the Hon John Fahey MP, said the report on petrol prices released today by the Australian Competition and Consumer Commission (ACCC) found that over the period from the week ending 30 June to the week ending 29 September the actual rise in petrol prices was below the level that was expected, taking into account the main underlying factors that influence petrol prices.
"The Commissions analysis suggests that actual fuel prices have not increased as much as expected on the basis of movements in underlying factors including historical wholesale and retail margins. This is not inconsistent with the suggestion that cost savings from the NTS changes have been passed on." (ACCC report, p.2)
While the Government does not like the current level of petrol prices, the ACCC report confirms the Government's position that petrol prices in Australia have been largely driven by international oil and petrol prices, in particular the spot price for Singapore Mogas 95 unleaded, and the Australian and US dollar exchange rate.
The ACCC report examined the following factors which influence petrol prices:
- International petrol prices
- The Australian/US dollar exchange rate
- Commonwealth and State excises and taxes; and
- Discounting by oil companies.
The ACCC confirmed that cost savings available to the petroleum sector as a result of the introduction of The New Tax System could be up to 1.6 cents a litre, higher than the Governments own estimate of 1.5 cents a litre.
The ACCC report also addresses the country-city petrol price differential and found that it had decreased since the introduction of The New Tax System. While the ACCC comes to no conclusions regarding the Fuel Sales Grant Scheme because it is currently inquiring into whether the Grant is being passed on, it suggests that the Grant may be having a positive impact.