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The Canberra Times
The Canberra Times
National

Fuel prices dropping but NRMA urges more transparency

Olivia Adams filling her car up at BP in Braddon. Picture: James Croucher

The NRMA believes that the ACT needs a government-mandated fuel price monitoring app "now more than ever" in the wake of the federal government's decision to impose a 22 cent per litre cut in the wholesale price.

Fuel prices in the ACT have fallen, as have the wholesale prices per barrel out of the Singapore source, since the federal government duty cut was announced in the federal budget.

However, the NRMA says without a real-time app in which the petrol stations are required to provide their pump prices, as opposed to the crowd-sourced apps, Canberra motorists are still "in the dark" as to whether the price cuts are being passed on in full.

NSW has had a government-regulated app, Fuel Check, since 2017.

An ACT Assembly inquiry into fuel pricing recommended a similar tool, based on Fuel Check, be developed for the territory.

The government agreed to "investigate" this but no further action has been taken.

"The ACT has always had the rough end of the stick when it comes to fuel pricing," NRMA spokesman Peter Khoury said.

"And the volatility in fuel prices flowing through from international events, such as the Russian invasion of the Ukraine, has been added to the mix.

"In NSW, we have that regulated transparency on pricing in real-time but in the ACT, for whatever reason, we don't.

"In times of volatile pricing, that transparency is needed more now than ever."

The Australian Competition and Consumer Commission (ACCC) has been empowered by the federal government to ensure the full 22.1 cents per litre excise cut from the budget - a reduction of 50 per cent in the 44.2 cents per litre excise previously - will be passed on.

But the excise cut was announced at a time when market volatility and currency exchange rates can be of equal significant in their influence.

Australia's unleaded petrol price is based off the price of the benchmark Singapore gasoline price known as Mogas while diesel prices are based off the Gasoil index.

In mid-March, Mogas prices were at the highest seen since February 2013, with some easing of late.

The ACCC is convinced the excise cuts are being passed on in full, with average daily regular unleaded petrol prices falling by between 25 and 27 cents per litre in Sydney, Melbourne and Brisbane, by around 31 cents in Adelaide, and by 35 cents in Perth.

However, it has warned that it could take some time for a full benefit to flow given petrol stations with lower turnover need to use up existing stocks of petrol and diesel, and restock with fuel at the reduced wholesale price.

It monitors prices in 190 locations, including Canberra and Queanbeyan, publishing reports on a quarterly basis.

Filling up in Braddon on Wednesday afternoon, Olivia Adams said she was pleasantly surprised to see the price drop, particularly ahead of a road trip to Melbourne which was shaping up to be costly.

"I wasn't expecting it to go down this quickly, so very happy that it's [not as expensive]," she said, after filling up her car for $1.73 per litre.

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