GRIPES about petrol prices are a bit like gripes about politicians, taxes and the youth of today – ubiquitous.
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But that does not mean there is no substance to the complaints.
It’s the muddied maths of the petrol industry that so infuriates people – the lack of logic and clear reasoning for how prices are determined.
Prices vary wildly between cities only a short distance from each other. One town sells petrol for a cheaper price than another town much closer to Sydney and its ports. Petrol prices jump as a public holiday weekend approaches.
Each time the furious voices rise to a certain pitch, the petrol companies try to placate us with sober explanations as to how their prices are determined.
And yet none of it seems to make much sense.
Indeed, often it seems the petrol companies protest too much.
So what’s the answer? Scrutiny.
That’s why the Australian Competition and Consumer Commission’s new interest in this sector is welcome news.
Starting next month, the ACCC will issue regular reports which will analyse what drives petrol prices.
It will investigate transport and storage costs, as well as wholesale, distribution and retail costs to fully explain prices and where money is being made in the petrol price value chain.
In the meantime, here’s a couple of the basic facts to ponder.
The freight to get fuel from Sydney to Bathurst is about 3.3 to 3.5 cents per litre. If the same tanker delivers to the Sydney metropolitan area, the delivery charge is about two cents per litre.
So the claim the freight is to blame for the difference in fuel price between Sydney and Bathurst? You be the judge.
As well as the price at the bowser, there is another cost the petrol companies should carefully consider.
That’s the cost of customers’ lost confidence.