Show  Fuel prices are influenced by many factors, including overseas and local market forces. While the ACCC does monitor petrol prices, we do not set or control them. Fuel prices can go up and down due to a combination of factors:
For petrol, diesel and automotive LPG the largest component of the price you pay is generally represented by the international benchmark price. The current benchmark prices for fuels sold in Australia are:
Changes in international prices can take around two weeks to work their way through the supply chain in Australian cities and longer in regional areas. Petrol prices in Australia tracked against the international benchmarkThe chart below shows how the price of petrol in the five largest cities (Sydney, Melbourne, Brisbane Adelaide and Perth) has been tracking against the international benchmark price over the last 90 days. Source: ACCC calculations based on FUELtrac, Argus Media and Reserve Bank of Australia data.1 Retail prices are seven-day rolling averages. They are regular unleaded petrol prices in all cities. The international prices are seven-day rolling average Singapore Mogas 95 Unleaded prices, lagged by 10 days. As international benchmark prices for petrol, diesel and LPG are priced in US dollars (USD), a change in the value of the Australian dollar (AUD) relative to the USD may affect the domestic price of fuel. However, don’t expect fuel prices to fall every time the Australian dollar is higher than the US dollar. This can only happen if the benchmark price remains the same or falls and other local factors don’t push prices up. Like any other business, fuel wholesalers and retailers have different costs they need to recover through their prices. These can include wharfage, freight, insurance, transport, storage, salaries, rent, power and other utilities. On top of this, wholesalers and retailers need to make a profit in order to make their businesses viable. This margin is ultimately determined by the level of competition in the marketplace. Transportation and storage of LPG is more expensive than for petrol and diesel because LPG must be kept as a liquid which requires specialised storage and transportation. All retail fuel prices in Australia include GST at the rate of 10 per cent (or 1/11 of the total price paid). Excise rates on fuel and petroleum products (other than aviation fuels) are indexed twice a year in line with the consumer price index (CPI) – generally in February and August. Automatic indexation of fuel excise was re-introduced by the Australian Government on 1 July 2015. On 29 March 2022 the Australian Government announced a 50% cut in fuel excise for 6 months. From 30 March to 28 September 2022, excise rates are:
More information on current excise duty rates for fuel and petroleum products may be viewed on the Australian Taxation Office (ATO) website. A petrol price cycle is a movement in retail price from a low point (or trough) to a high point (or peak) to a subsequent low point. Petrol prices move up and down in regular patterns or cycles. In these cycles, petrol prices steadily go down for a period followed by a sharp increase. Petrol price cycles are the result of deliberate pricing policies of petrol retailers, and are not directly related to changes in wholesale costs. The cheapest and most expensive days to buy petrol can change from cycle to cycle. Use price cycles to help you decide when to buy petrol. See: Petrol price cycles in capital cities Some consumers think petrol prices increase by more than usual just before public holidays and long weekends. Our last detailed review of prices in the five largest cities around every public holiday found that, on average, public holiday price increases were no larger than the usual price cycle increases during the year. These price rises may be more noticeable before holiday weekends because many motorists are making long trips and using more petrol than usual. ACCC's fuel monitoring role Fuel reports Important notice[1] The ACCC obtains confidential proprietary data from Argus Media under licence, from which data the ACCC conducts and publishes its own calculations and forms its own opinions. Argus Media does not make or give any warranty, express or implied, as to the accuracy, currency, adequacy, or completeness of its data and it shall not be liable for any loss or damage arising from any party’s reliance on, or use of, the data provided or the ACCC’s calculations.
The ACCC acknowledges the Federal Budget announcement of a six-month reduction in fuel excise from 30 March 2022. We are monitoring fuel prices following this cut in fuel excise. After the cut in fuel excise came into effect on 30 March 2022, ACCC monitoring found significant falls in retail fuel prices in all capital cities and the vast majority of regional locations. After 6 weeks, the influence of the lag between changes in wholesale prices and changes in retail prices had been incorporated into retail price movements, and the cuts to fuel excise had clearly been passed on to a large extent. By this time petrol stations had likely used up existing stocks of petrol and diesel, and restocked with fuel at a lower wholesale price taking account of the excise cut. There are other factors that also contributed to price falls around the time of the cuts, such as a decrease in international refined petrol and diesel prices in early April. Recent price movementsFrom the middle of April to late June, international benchmark refined petrol and diesel prices generally increased, influenced by the impact of the war in Ukraine on international crude oil prices. This led to increases in wholesale prices which have been flowing into retail prices in many locations.
Since late June, international benchmark refined petrol and diesel prices have decreased, leading to reductions in wholesale prices.
These reductions are starting to flow through to retail prices. For example, in Perth at the peak of the petrol price cycle, the average regular unleaded petrol price on 13 July 2022 (209.7 cents per litre) was 13.5 cents per litre lower than the previous peak price on 29 June (223.2 cents per litre). Due to a range of factors, including petrol sales volumes at retail sites and petrol price cycles in the largest capital cities, the current reductions vary across locations. For information on how the price of petrol in the 5 largest cities (Sydney, Melbourne, Brisbane Adelaide and Perth) has been tracking against the international benchmark price over the last 90 days, see Petrol prices in Australia tracked against the international benchmark. Price reductions following the excise cutsRegular unleaded petrol pricesIn the capital cities, in the period between 29 March and 10 May 2022, the largest decrease seen in average daily regular unleaded petrol prices was:
The existence of petrol price cycles in the 5 largest cities means that the impact of the cut in excise on retail petrol prices may not be clear to motorists. See Petrol price cycles following the cut in excise. Petrol prices in most regional centres also decreased significantly. The average decrease across all regional locations that the ACCC monitors was over 32 cents per litre. Diesel pricesThe monitoring also found a reduction in diesel prices in many locations. In the capital cities, in the period between 29 March and 10 May 2022, the largest decrease seen in average daily diesel prices was:
Diesel prices in many regional centres also decreased significantly. The average decrease across all regional locations the ACCC monitors was over 29 cents per litre. There are a relatively small number of locations in regional areas where our analysis showed the decrease in average petrol and diesel prices was smaller than the cut in excise. We have sought more information from petrol retailers in these locations. Many of these locations are smaller and/or in remote areas, where turnover of fuel stocks can be slow. The existence of petrol price cycles in the 5 largest cities means that the impact of the cut in excise on retail petrol prices may not be clear to motorists. However, the price reductions can be seen in the lower peaks and troughs of the price cycles relative to those before the excise cut. SydneyThe chart below shows daily average regular unleaded petrol prices in Sydney from 1 March to 4 May 2022. Source: FUELtrac
MelbourneThe chart below shows daily average regular unleaded petrol prices in Melbourne from 1 March to 4 May 2022. Source: FUELtrac
BrisbaneThe chart below shows daily average regular unleaded petrol prices in Brisbane from 1 March to 4 May 2022. Source: FUELtrac
AdelaideThe chart below shows daily average regular unleaded petrol prices in Adelaide from 1 March to 4 May 2022. Source: FUELtrac
PerthThe chart below shows daily average regular unleaded petrol prices in Perth from 17 March to 22 April 2022. Source: FUELtrac
The ACCC wrote a letter to the major wholesalers and retailers ( PDF 233.58 KB ) on 31 March 2022 setting out expectations that the cut in excise flows into wholesale and retail prices as soon as possible. All companies responded in a timely manner, with responses including:
We urge consumers to continue to look at information about price cycles in capital cities and consult comparison apps to compare petrol prices. Generally, motorists who fill up at independent chains will save compared to those who shop only at major-branded petrol stations.
Learn more about the ACCC's fuel monitoring role. |
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