ACCC to target high Darwin petrol prices

MARCH 10, 2015
News.com.au

DARWIN is the first regional location to come under the eye of the consumer watchdog as it investigates discrepancies in petrol prices around the country.
THE Australian Competition and Consumer Competition says it will investigate petrol prices in Darwin because of persistently high fuel costs in the Northern Territory’s capital city.
Annual average retail petrol prices in Darwin in 2013-14 were about 170 cents-per-litre (cpl), almost 20 cents higher than in the five largest capital cities.
The ACCC announced the inquiry on Tuesday, saying it would seek to “explain each component of the prices paid at the bowser” in the city.
“Petrol prices in Darwin are among the highest in Australia,” ACCC chairman Rod Sims said in a statement.
Mr Sims said Darwin prices also remained “consistently higher than in Katherine, which is far smaller and more than three hours inland”.
“Furthermore the differential between Darwin prices and prices in the five largest capital cities has increased in recent years,” Mr Sims added.
Of the five largest cites, Perth recorded the highest monthly average petrol price in January of 115.0cpl.
That was followed by Brisbane (112.4cpl), Melbourne (108.1cpl), Adelaide (105.8cpl) and Sydney (104.6cpl).
The ACCC says it will examine petrol markets in at least another two regional locations by the end of the year.
The ACCC can make recommendations for change to a tier of government, or during the study, may find a breach of the Competition and Consumer Act.
The government has indicated that if the fuel industry will not self-regulate, it will consider passing legislation to force it to be transparent about its pricing.
Last year the Northern Territory government held a fuel summit to try to pressure companies to lower the price margin, which was reduced for a few months before creeping up again this year.
The ACCC is sending the first round of notices to the major fuel companies in Darwin at the moment, and requests for more detailed information will be sent in coming weeks, Mr Sims said.