RTXQ0LF
A man refuels his car at a petrol station in Sydney October 26, 2009. Australian producer prices rose less than expected last quarter as a strong currency slashed import costs, easing pressure on the central bank to raise interest rates by an aggressive 50 basis points next week. Reuters/Daniel Munoz

Australian Competition and Consumer Commission released its third quarterly report of Australian Petroleum industry for 2015 on Monday. The report shows a rise in the average price of petroleum in the five largest cities that include Sydney, Melbourne, Brisbane, Adelaide and Perth in the June quarter compared to the March.

The March quarter showed the price of petrol in the five cities was at 118.9 cent per litre, it rose by 16.9 cpl to 135.8 cpl by the next quarter. The steep rise in petrol prices of these regions resulted from the rising international crude oil and petrol prices and also because of the poor AU$-US$ exchange rate. The differential between the average prices of petrol across all regions in Australia and the five largest cities has also decreased significantly over the last two quarters to 0.7 cent per litre in June. The reports suggested that in June 2015, the monthly average petrol prices in the 77 regional locations monitored by ACCC were lower than the five cities.

“In the second half of 2014, regional prices were slower to fall following decreases in international refined petrol prices, compared with prices in the larger cities. They were also slower to rise in the March and June 2015 quarters,” ACCC Chairman Rod Sims said. “The differential in June 2015 was particularly low and is likely to increase, to some extent, in coming months once international refined petrol prices stabilise.” Sims also said that the differential is likely to increase to a certain extent after reaching a substantial low in the third quarter. The West Australian reported Sims say that just as the regional prices do not fall as low as the city prices, they do not increase with the same pace as well.

Sims has also made clear in his statement that contrary to the beliefs of many, ACCC does not set the fuel prices or can take action if they are set above cost. The wholesale and retail prices in Australia are determined by the market. He added that the aim of releasing reports quarterly is to increase transparency in the petroleum industry and help consumers distinguish the factors determining the retail petrol prices in Australia.

Contact the writer at feedback@ibtimes.com.au, or let us know what you think below.

RELATED STORIES