report on the australian petroleum market march quarter 2021 report on...mar qtr 17.4 15.8 girds...

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accc.gov.au

Report on the Australian petroleum marketMarch quarter 2021

July 2021

http://www.accc.gov.au

Australian Competition and Consumer Commission 23 Marcus Clarke Street, Canberra, Australian Capital Territory, 2601

© Commonwealth of Australia 2021

This work is copyright. In addition to any use permitted under the Copyright Act 1968, all material contained within this work is provided under a Creative Commons Attribution 3.0 Australia licence, with the exception of:

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� any illustration, diagram, photograph or graphic over which the Australian Competition and Consumer Commission does not hold copyright, but which may be part of or contained within this publication.

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Important notice

The information in this publication is for general guidance only. It does not constitute legal or other professional advice, and should not be relied on as a statement of the law in any jurisdiction. Because it is intended only as a general guide, it may contain generalisations. You should obtain professional advice if you have any specific concern.

The ACCC has made every reasonable effort to provide current and accurate information, but it does not make any guarantees regarding the accuracy, currency or completeness of that information.

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.

Parties who wish to re-publish or otherwise use the information in this publication must check this information for currency and accuracy prior to publication. This should be done prior to each publication edition, as ACCC guidance and relevant transitional legislation frequently change. Any queries parties have should be addressed to the Director, Content and Digital Services, ACCC, GPO Box 3131, Canberra ACT 2601.

ACCC 07/21_21-32

www.accc.gov.au

http://www.accc.gov.au

iii Report on the Australian petroleum market—March quarter 2021

ContentsMarch quarter 2021 – Petrol snapshot 1

Key messages 2

1. Developments in the petroleum industry 101.1 Demand for petrol remained below pre-pandemic levels 10

1.2 South Australia’s fuel price transparency scheme commenced 10

1.3 RAA introduced a fuel price app 11

1.4 The Tasmanian Government commented that FuelCheck TAS put downward pressure on fuel prices and improved price transparency 11

1.5 RACT found that real-time fuel price reporting in Tasmania saved motorists over $11 million since it was introduced 11

1.6 ExxonMobil announced the closure of its refinery at Altona 12

1.7 Fuel excise increased 12

2. ACCC Activities 132.1 ACCC and the petrol industry 13

2.2 Activities in the March quarter 2021 13

2.3 Report on petrol prices by major retailer in 2019 and 2020 14

3. Retail petrol price movements in the 5 largest cities 153.1 Retail prices in the 5 largest cities increased 15

3.2 Retail prices increased over the quarter 15

3.3 The number and nature of price cycles in each city varied 16

3.4 Retail prices in Brisbane were higher than the other 4 largest cities in aggregate 17

3.5 Retail petrol prices in Australia were lower than in most OECD countries due to lower taxes 18

3.6 The price differential between premium and regular unleaded petrol increased 20

4. Components of petrol prices in the 5 largest cities 224.1 Mogas 95 was the largest component of the price of petrol in the quarter 22

4.2 Changes in Mogas 95 prices continued to significantly influence changes in retail prices 23

4.3 Gross indicative retail differences were lower in the quarter 25

4.4 The increase in Mogas prices was the main contributor to higher retail prices in the quarter 33

5. Retail petrol price movements in the smaller capital cities and in regional locations 345.1 Retail prices in Darwin and Canberra were below the 5 largest cities in aggregate 34

5.2 Average regional prices were again lower than prices in the 5 largest cities 35

5.3 The difference between regional and city prices varies between jurisdictions 37

6. Crude oil and refined petrol price movements 426.1 Crude oil and refined petrol prices increased 42

6.2 The OPEC cartel and COVID-19 were the main factors influencing crude oil prices 43

6.3 Refiner margins increased but remained significantly below the 10-year average 44

6.4 Crude oil prices increased to around the long-term average 45

iv Report on the Australian petroleum market—March quarter 2021

7. Diesel and LPG prices 467.1 Retail diesel prices increased in the quarter 46

7.2 Taxes were the largest component of the average diesel price 47

7.3 Retail LPG prices increased in the quarter 47

7.4 Other costs and margins were a relatively large component of the average LPG price 49

Appendix A: Key messages from the ACCC report ‘Independent chains generally have the lowest prices – report on petrol prices by major retailer in 2019 and 2020’ 50

Appendix B: Petrol price data for monitored locations 65

Appendix C: Petrol prices and GIRDs in regional market study locations 72

1 Report on the Australian petroleum market—March quarter 2021

AVERAGE RETAIL PETROL PRICES

WHAT MAKES UP THE RETAIL PRICE OF PETROL

GROSS INDICATIVE RETAIL DIFFERENCES

Other costs and margins (wholesale and retail)Taxes (excise and GST)International cost of refined petrol (Mogas 95)

GIRDs are the di�erence between average retail petrol prices and indicative wholesale prices in the 5 largest cities. They are a broad indicator of gross retail margins.

Breakdown of the average petrol price in thequarter across the 5 largest cities.

DIFFERENCE BETWEEN REGIONALAND CITY PRICESThe di�erence between average retail petrol prices in over 190 regional locations and average prices in the 5 largest cities.

133.4 cpl

PETROL

18 24.2

54.4

54.8

41

41

cpl%

12.0

2.0

1.1

12.9

Perth

Hobart

Canberra

Sydney

Darwin

Melbourne

Adelaide

Brisbane 135.69.6

132.810.4

133.7

9.5

131.99.9

126.410.4

130.312.5

136.2 9.9

132.118.0

Regional locations 5 largest cities

133.4-3.3

1.4

5 largest cities

130.1

Retail price

117.6 Wholesale price

Dec qtr

Mar qtr

17.4

GIRDs15.8

133.4

121.4

104.0

1.6

Prices are shown in cents per litre (cpl). cpl change from previous quarter.References to ‘petrol’ are to regular unleaded petrol (RULP) in all capital cities except Sydney, where E10 prices (RULP with up to 10% ethanol) are used.

March quarter 2021 – Petrol snapshot


Key messages

Quarterly average retail petrol prices in the 5 largest cities increased in the March quarterIn the March quarter 2021, average retail petrol prices across the 5 largest cities (Sydney, Melbourne, Brisbane, Adelaide and Perth) were 133.4 cents per litre (cpl).1 This was an increase of 12.0 cpl from the December quarter 2020 (121.4 cpl). The increase in retail prices was primarily due to an increase in international crude oil and refined petrol prices in the quarter.

Prices increased in all cities, with Adelaide having the largest increase (18.0 cpl) and Brisbane the smallest (9.6 cpl).

Daily average prices increased in the quarter after being relatively stable in the second half of 2020Daily average prices in the 5 largest cities (on a 7-day rolling average basis) were relatively stable in the second half of 2020, following record low prices on 29 April 2020.2

The following chart shows that 7-day rolling average retail petrol prices trended upwards in the March quarter 2021, reaching a high of 144.3 cpl on 8 March 2021. The last time 7-day rolling average retail petrol prices were this high was on 24 February 2020, before the influence of COVID-19.

Seven-day rolling average retail petrol prices in the 5 largest cities: 1 April 2019 to 31 March 2021

cpl

80

90

100

110

120

130

140

150

160

170

Ap

r–19

May

–19

Jun

–19

Jul–

19

Au

g–1

9

Sep

–19

Oct

–19

No

v–19

Dec

–19

Jan

–20

Feb

–20

Mar

–20

Ap

r–20

May

–20

Jun

–20

Jul–

20

Au

g–2

0

Sep

–20

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–20

No

v–20

Dec

–20

Jan

–21

Feb

–21

Mar

–21

Source: ACCC calculations based on data from FUELtrac.

Note: The area to the right of the dotted vertical line in this and subsequent charts represents the March quarter 2021.

1 In this report, ‘petrol’ means regular unleaded petrol (RULP) unless otherwise specified. From 1 July 2014, the ACCC has used E10 prices (i.e. RULP with up to 10% ethanol) instead of RULP prices for Sydney in the average price for the 5 largest cities. All prices in this report are nominal prices unless otherwise specified. Real prices means prices adjusted for inflation using the Consumer Price Index.

2 A 7-day rolling average price is the average of the current day’s price and prices on the 6 previous days. Traditionally, the ACCC has used a 7-day rolling average to smooth out the influence of petrol price cycles in the larger cities on price movements. This has been less effective in recent years because the duration of price cycles in most of the larger cities has become substantially greater than 7 days.


Retail petrol prices were higher because of higher international pricesRetail petrol prices in Australia are primarily determined by international refined petrol prices (which in turn are influenced by international crude oil prices) and the AUD–USD exchange rate. The relevant benchmark for the wholesale price of petrol in Australia is the price of Singapore Mogas 95 Unleaded (Mogas 95), which is the price of refined petrol in the Asia-Pacific region.

The following chart shows that retail petrol prices in the 5 largest cities and Mogas 95 prices in Australian cents per litre moved in a similar pattern over the 2 years to March 2021. Both remained relatively stable from June to November 2020 and then increased in each subsequent month.

Monthly average retail petrol prices in the 5 largest cities and Mogas 95 prices: April 2019 to March 2021

cpl

cpl

5 largest cities (LHS) Mogas 95 (RHS)

10

20

30

40

50

60

70

80

90

80

90

100

110

120

130

140

150

160

Ap

r–19

May

–19

Jun

–19

Jul–

19

Au

g–1

9

Sep

–19

Oct

–19

No

v–19

Dec

–19

Jan

–20

Feb

–20

Mar

–20

Ap

r–20

May

–20

Jun

–20

Jul–

20

Au

g–2

0

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–20

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–20

No

v–20

Dec

–20

Jan

–21

Feb

–21

Mar

–21

Source: ACCC calculations based on data from FUELtrac, OPIS, Argus Media and the Reserve Bank of Australia (RBA).

Monthly average Mogas 95 prices increased from 44.7 cpl in December 2020 to 59.9 cpl in March 2021 (an increase of 15.2 cpl). Mogas 95 prices were last at this level in February 2020. Monthly average retail prices in the 5 largest cities increased by a similar amount – from 124.7 cpl in December 2020 to 140.6 cpl in March 2021 (an increase of 15.9 cpl).

In the March quarter 2021, quarterly average Mogas 95 prices increased by 12.9 cpl from the previous quarter, similar to the increase in retail petrol prices (12.0 cpl).

The Organisation of the Petroleum Exporting Countries (OPEC) cartel and other crude oil producing nations (including Russia) agreed to production cuts that contributed to higher international crude oil and refined petrol prices in the quarter. In March 2021, the OPEC cartel was withholding around 8 million barrels per day and the members agreed to extend most existing production cuts into April 2021.


Demand for petrol in the quarter remained below pre-pandemic levelsThe COVID-19 restrictions on travel and economic activity in Australia imposed in mid-March 2020 meant that there was less fuel purchased from retail sites in the June quarter 2020. In the second half of 2020, petrol sales volumes in Australia as a whole partially recovered as restrictions in parts of Australia eased. Quarterly average petrol sales in 2020 were 14% below quarterly average petrol sales in 2019.

Sales volumes declined slightly in the March quarter 2021, influenced by lockdowns across Brisbane, Perth, Melbourne and parts of Sydney, and flooding in New South Wales and Queensland, as shown in the following chart. They were around 7% lower than quarterly average sales volumes in calendar year 2019 but 7% higher than quarterly average sales volumes in calendar year 2020.

Quarterly sales volumes of regular unleaded petrol in Australia: March quarter 2019 to March quarter 2021

1,500

1,700

1,900

2,100

2,300

2,500

2,700

Mar

–19

Jun

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Sep

–19

Dec

–19

Mar

–20

Jun

–20

Sep

–20

Dec

–20

Mar

–21

Mill

ion

litre

s

Avg: 2019

Avg: 2020

Source: Department of Industry, Science, Energy and Resources (DISER), Australian Petroleum Statistics, issue 297, April 2021 at: https://www.energy.gov.au/publications/australian-petroleum-statistics-2021, accessed on 15 June 2021.

Gross indicative retail differences decreased for the second consecutive quarterGross indicative retail differences (GIRDs) across the 5 largest cities were relatively high in 2020. GIRDs are a broad indicator of gross retail margins. In the March quarter 2021, average GIRDs in the 5 largest cities were 15.8 cpl, a decrease of 1.6 cpl from the previous quarter. This was the second consecutive quarter in which GIRDs decreased.

Despite the decreases in GIRDs in the past 2 quarters, they remain relatively high compared with previous levels, as shown in the following chart.

https://www.energy.gov.au/publications/australian-petroleum-statistics-2021


Quarterly average GIRDs in the 5 largest cities: June quarter 2018 to March quarter 2021

8

10

12

14

16

18

20

Jun

–18

Sep

–18

Dec

–18

Mar

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Jun

–19

Sep

–19

Dec

–19

Mar

–20

Jun

–20

Sep

–20

Dec

–20

Mar

–21

cpl

Source: ACCC calculations based on data from FUELtrac, AIP, Ampol, bp, Mobil, Viva Energy and WA FuelWatch.

GIRDs are calculated by subtracting average wholesale prices (as indicated by published terminal gate prices (TGPs)) from average retail petrol prices. TGPs are the prices at which petrol can be purchased from wholesalers in the spot market and are posted on a regular basis on the websites of the major wholesalers. Although few wholesale transactions occur at TGPs, they can be regarded as indicative wholesale prices. TGPs vary across brands and cities. TGPs reflect the wholesale price of petrol only, and exclude other retail operating costs (such as freight, branding, rent, labour and utility costs). As GIRDs include these costs, they should not be confused with actual retail profits.

GIRDs are averages across the 5 largest cities over time. The level of prices, costs and profits vary significantly between retail operations and not all retail petrol sites will be achieving these gross margins. Some will be achieving higher gross margins, others lower. The ACCC’s petrol market studies published between 2015 and 2017 found that profits per retail petrol site could vary considerably between retailers, with some retail sites making substantial profits and others making very little.

Lower turnover of petrol may continue to influence GIRDs The effects of COVID-19 on petrol demand likely contributed to the high GIRDs in 2020, and may have continued to influence GIRDs in the March quarter 2021. Sales volumes in the March quarter 2021 were around 7% lower than quarterly average sales volumes in calendar year 2019.

Petrol retailing is a high-volume low-margin business with many fixed costs (such as rent and the cost to use a particular brand). This means when sales volumes decline, the cost per unit of petrol will increase. To generate revenue to partially cover their fixed costs, some retailers may have been setting retail prices higher than they otherwise would.

The substantial decrease in petrol demand from March 2020 has also had negative implications for refineries throughout the world, including in Australia. In 2020, both Viva Energy and Ampol reported significant losses at their local refineries. ExxonMobil announced the closure of its Altona refinery in February 2021, following on from bp’s announced closure of its Kwinana refinery in October 2020.


Changes to price cycles in the capital cities in 2020 continued in the March quarterPrice cycles (i.e. the sudden, sharp increases in the price of petrol, followed by a gradual decline) are a prominent and longstanding feature of retail petrol prices in Australia’s 5 largest cities. The shape of price cycles changed in 2020. Compared with 2019, daily average retail prices in 2020 increased further above TGPs at the top (peak) of the price cycles, and did not decrease as close to TGPs at the bottom (trough) of the price cycles.

The following chart shows this change for Melbourne (where petrol demand decreased substantially in the June and September 2020 quarters).3

Daily average retail petrol prices, TGPs and GIRDs in Melbourne: 1 July 2019 to 31 March 2021

-10

10

30

50

70

90

110

130

150

170

190

Jul–

19

Au

g–1

9

Sep

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No

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cpl

GIRDsRetail prices TGPs

Source: ACCC calculations based on data from FUELtrac, Ampol, bp, Mobil and Viva Energy.

The changes to the price cycles in the capital cities indicate that it is even more important for price sensitive consumers to shop around when purchasing petrol.

Information to help consumers compare petrol prices across retailers is now widely available. This includes real-time price data available through fuel price transparency schemes operating in New South Wales, Western Australia, Queensland, the Northern Territory, South Australia and Tasmania, and a range of commercial apps and websites that motorists can use.

Motorists can save substantial amounts of money by using these websites and apps to decide where to buy fuel, and watching petrol price cycles (including looking at the price cycle pages on the ACCC website) to determine when to buy.

Independent chains generally have the lowest prices in the capital citiesOn 8 June 2021, the ACCC released its second industry report under the current petrol monitoring Direction.4 The report examined annual average retail petrol prices in 2019 and 2020 to identify the highest and lowest priced major retailers in each capital city.

3 Similar charts for Sydney, Melbourne, Brisbane and Adelaide are in chapter 4.

4 ACCC, Independent chains generally have the lowest prices – report on petrol prices by major retailer in 2019 and 2020, 8 June 2021, at: https://www.accc.gov.au/system/files/Independent%20chains%20generally%20have%20the%20lowest%20prices%20-%20report%20on%20petrol%20prices%20by%20major%20retailer%20in%202019%20and%202020.pdf.

https://www.accc.gov.au/system/files/Independent chains generally have the lowest prices - report on petrol prices by major retailer in 2019 and 2020.pdf

https://www.accc.gov.au/system/files/Independent chains generally have the lowest prices - report on petrol prices by major retailer in 2019 and 2020.pdf


The report showed that the cheapest major retailer in 2020 in all 8 capital cities was an independent retail chain. These were Speedway in Sydney, Metro Petroleum in Melbourne and Canberra, United in Brisbane, Adelaide and Hobart, Vibe in Perth and FuelXpress in Darwin. Lower priced retailers, including many of the independent chains, compete vigorously on price and provide an important influence on the level of price competition across the cities.

The report revealed that motorists in Australia’s 5 largest cities could have saved a combined total of nearly half a billion dollars in 2020 by switching from a variety of higher-priced to lower-priced retailers. The total potential savings in 2020 could have been around $216 million in Sydney, around $147 million in Melbourne, around $46 million in both Adelaide and Perth and around $31 million in Brisbane. The report also shows that the average range between the highest and lowest-priced major petrol retailers across the 5 largest cities increased to 11.4 cpl in 2020, from 8.4 cpl in 2019.

Motorists can use information about the relative average prices of the major retailers in the report, in conjunction with other publicly available fuel price information, to help them make informed purchasing decisions.

The international price of refined petrol and taxes made up over 80% of the average retail petrol price The 3 broad components of the retail price of petrol are: the international price of refined petrol, taxes (excise and GST) and other costs and margins at the wholesale and retail levels.

In the March quarter 2021, taxes and Mogas 95 accounted for similar proportions of the average retail price of petrol, following 3 successive quarters when taxes accounted for a larger proportion than Mogas 95 prices. These 2 components accounted for 82% of the average retail price of petrol in the quarter.

The following chart shows the change in the components of petrol across the 5 largest cities between the December quarter 2020 and the March quarter 2021. The chart separates the other costs and margins component into 2 elements: other wholesale costs and margins (which includes international shipping costs and other import costs, and wholesale costs and margins), and retail costs and margins (represented by GIRDs).

Changes in the components of average retail petrol prices across the 5 largest cities: December quarter 2020 to March quarter 2021

Dec–20 Mogas 95 Exchange rate Other wholesalecosts and margins

Taxes GIRDs Mar–21

cpl

Mogas 95 Other wholesale costs and margins Taxes GIRDs

121.4 cpl

+16.1 cpl

-3.2 cpl

+12.9 cpl

-0.5 cpl +1.2 cpl -1.6 cpl

133.4 cpl+12.0 cpl

31.341.9

54.8

10.3

9.8

51.8

53.0

17.4

15.8

0

20

40

60

80

100

120

140

160

Source: ACCC calculations based on data from FUELtrac, Argus Media, Ampol, bp, Mobil, Viva Energy, RBA and the Australian Taxation Office (ATO).

Notes: All prices are in Australian cents per litre.

The taxes component includes fuel excise and wholesale GST. The small amount of retail GST is included in GIRDs rather than in taxes, to be consistent with GIRDs reported elsewhere in this report.


The chart shows that the increase in the average retail price of petrol in the 5 largest cities by 12.0 cpl in the March quarter 2021 was largely a result of a large increase in Mogas 95 prices.

The AUD–USD exchange rate is a significant determinant of Australia’s retail petrol prices because international refined petrol is bought and sold in US dollars in global markets. The higher AUD–USD exchange rate in the quarter offset the influence of the increase in Mogas 95 prices by 3.2 cpl. The net effect of movements in Mogas 95 prices and the AUD–USD exchange rate was that Mogas 95 prices in Australian cents per litre increased by 12.9 cpl.

South Australia’s fuel price transparency scheme commencedOn 20 March 2021, the South Australian fuel price transparency scheme commenced and will run as a trial for 2 years.

All petrol retailers must submit their prices to an aggregator, with the data then available for app developers to use. Retailers are required to report changes to their retail prices within 30 minutes of making the change. Service stations that fail to comply could face penalties ranging from a $550 expiation fee to a maximum penalty of $10,000. Consumer and Business Services South Australia will closely monitor retailers to ensure they are complying with the new laws. South Australia’s fuel price transparency scheme is similar to the one in operation in Queensland.

The Australian Government provided more details about its fuel security packageOn 17 May 2021, the Australian Government announced further details about the fuel security package.5 Initiatives in the 2021–22 Budget included:

� a variable Fuel Security Service Payment to the refineries, funded by the Government, which recognises the fuel security benefits refineries provide to all Australians

� a Minimum Stockholding Obligation to ensure industry holds minimum quantities of key transport fuels to guarantee a baseline level of stocks at all times

� up to $302 million in support for major refinery infrastructure upgrades to help refiners bring forward the production of better-quality fuels from 2027 to 2024

� $50.7 million to implement and monitor the Fuel Security Service Payment and the Minimum Stockholding Obligation, ensuring industry complies with the new fuel security framework.

The variable Fuel Security Service Payment has been costed at up to $2.047 billion to 2030 in a worst-case scenario. This figure assumes that both refineries are paid at the highest rate over the entire 9 years in COVID-19-like economic conditions, which is unlikely as the economy recovers. Actual payments are expected to be less than this, as payments are linked to refining margins at the time and to actual production of key transport fuels.

The Prime Minister said that the Government was delivering on its commitment to maintain a self-sufficient refining capability in Australia by supporting the operation of the Ampol refinery at Lytton and the Viva Energy refinery at Geelong.

On 26 May 2021, the Government introduced the Fuel Security Bill to the Parliament.6 The bill aims to implement the Fuel Security Service Payment to ensure it can begin on 1 July 2021, and set the key parameters for the Minimum Service Obligation that will commence in 2022.

5 Prime Minister of Australia, The Hon Scott Morrison MP, and Minister for Energy and Emissions Reduction, the Hon Angus Taylor MP, Locking in Australia’s fuel security, joint media release, 17 May 2021, at: https://www.pm.gov.au/media/locking-

australias-fuel-security, accessed on 15 June 2021.

6 Parliament of Australia, Fuel Security Bill 2021, at: https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6716, accessed on 15 June 2021.

https://www.pm.gov.au/media/locking-australias-fuel-security

https://www.pm.gov.au/media/locking-australias-fuel-security

https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6716

https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r6716


The ACCC welcomes the decision to fund the Fuel Security Service Payment from the budget, rather than through a market mechanism which had initially been proposed in September 2020.7 The ACCC notes that the Government is still considering the details of the Minimum Stockholding Obligation, and is consulting with industry. However, to meet the Minimum Stockholding Obligation some industry participants may be required to build new storage facilities and may try and pass these additional costs onto consumers in the form of higher retail fuel prices. Depending on its design, the Minimum Stockholding Obligation could alter the relative competitive dynamics in the wholesale and retail fuel markets in Australia and thus impact on consumers.

Darwin prices continued to be lower than prices across the 5 largest citiesIn the March quarter 2021, average retail prices in Darwin were 126.4 cpl. This was 7.0 cpl lower than average prices across the 5 largest cities. This was the eighth time in the past 9 quarters that retail prices in Darwin were below those in the 5 largest cities.

Possible factors contributing to the relatively low retail prices in Darwin include the change in price setter from Coles to Viva Energy at Coles Express retail sites in 2019, the opening of a second FuelXpress retail site in 2019, and the opening of a new United retail site in 2020. Motorists in Darwin may have become more aware of changes in pricing behaviour in the Darwin market through information available from the fuel price transparency scheme in the Northern Territory (MyFuel NT), which commenced in November 2017.

Regional prices on average were lower than prices across the 5 largest cities for the third consecutive quarterThe ACCC monitors fuel prices in all capital cities and over 190 regional locations across Australia.

In the March quarter 2021, average prices in regional locations in aggregate (regional prices) were 130.1 cpl. This was 3.3 cpl lower than average prices in the 5 largest cities (133.4 cpl) and was the third quarter in a row when average regional prices were lower than average prices in the 5 largest cities. In the December quarter 2020, average regional prices were 1.9 cpl lower than average prices in the 5 largest cities.

Diesel and LPG prices increased in the quarterIn the March quarter 2021, diesel and liquefied petroleum gas (LPG) prices in the 5 largest cities both increased:8

� average retail diesel prices were 129.1 cpl in the quarter, an increase of 10.4 cpl (or around 9%) from the December quarter 2020 (118.7 cpl)

� average retail LPG prices were 85.6 cpl in the quarter, an increase of 8.9 cpl (or around 12%) from the December quarter 2020 (76.7 cpl).9

7 Prime Minister of Australia, The Hon Scott Morrison MP, and Minister for Energy and Emissions Reduction, the Hon Angus Taylor MP, Boosting Australia’s fuel security, media release, 14 September 2020, at: https://www.pm.gov.au/media/

boosting-australias-fuel-security, accessed on 15 June 2021.

8 References to LPG in this report refer to automotive LPG.

9 The percentage change in the quarter for petrol was around 10%. In comparing these percentage changes it is important to bear in mind that, as noted in chapter 7, petrol, diesel and LPG prices are driven by different international benchmark prices and taxes are lower on LPG compared with diesel and petrol.

https://www.pm.gov.au/media/boosting-australias-fuel-security

https://www.pm.gov.au/media/boosting-australias-fuel-security


1. Developments in the petroleum industry

1.1 Demand for petrol remained below pre-pandemic levels

The COVID-19 restrictions on travel and economic activity in Australia imposed in mid-March 2020 meant that there was less fuel purchased from retail sites in the June quarter 2020. In subsequent quarters, petrol sales volumes in Australia as a whole partially recovered as restrictions in parts of Australia eased. Quarterly average sales in 2020 (around 2,094 million litres (ML)) were 14% below quarterly average sales in 2019 (around 2430 ML).

Chart 1.1: Quarterly sales volumes of regular unleaded petrol in Australia: March quarter 2019 to March quarter 2021

1,500

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Mar

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Mill

ion

litre

s

Avg: 2019

Avg: 2020

Source: DISER, Australian Petroleum Statistics, issue 297, April 2021 at: https://www.energy.gov.au/publications/australian-petroleum-statistics-2021, accessed on 15 June 2021.

Sales volumes declined slightly in the March quarter 2021 to around 2,250 ML, from around 2,289 ML in the December quarter 2020, influenced by lockdowns across Brisbane, Perth, Melbourne and parts of Sydney, and flooding in New South Wales and Queensland.10 They were around 7% lower than quarterly average sales volumes in calendar year 2019 and 7% higher than quarterly average sales volumes in calendar year 2020.

1.2 South Australia’s fuel price transparency scheme commenced

On 20 March 2021, the South Australian fuel price transparency scheme commenced and will run as a trial for 2 years.11 All petrol retailers must submit their prices to an aggregator, with the data then available for app developers to use.

10 Ampol, Unaudited financial results for 1Q 2021, ASX release, 15 April 2021, at: https://www.ampol.com.au/about-ampol/investor-centre/asx-announcements, accessed on 15 June 2021.

11 Vickie Chapman MP, South Australian Attorney General, Fuel up! Real-time petrol pricing is here, media release, 20 March 2021, at: https://www.premier.sa.gov.au/news/media-releases/news/fuel-up!-real-time-petrol-pricing-is-here, accessed on 15 June 2021.



https://www.ampol.com.au/about-ampol/investor-centre/asx-announcements


https://www.premier.sa.gov.au/news/media-releases/news/fuel-up!-real-time-petrol-pricing-is-here


Retailers are required to report changes to their retail prices within 30 minutes of making the change. Service stations that fail to comply could face penalties ranging from a $550 expiation fee to a maximum penalty of $10,000. Consumer and Business Services South Australia will closely monitor retailers to ensure they are complying with the new laws.

South Australia’s fuel price transparency scheme is similar to the one in operation in Queensland.

1.3 RAA introduced a fuel price appOn 20 March 2021, the Royal Automobile Association of South Australia (RAA) introduced its myRAA app.12 It offers real-time fuel pricing data free to motorists to help them locate the cheapest prices. The data is also available on the RAA’s website.

According to a recent survey of RAA members, more than 80% of motorists are concerned about rising fuel prices, and rising fuel prices would make 76% of motorists more likely to use a real-time fuel price app.

1.4 The Tasmanian Government commented that FuelCheck TAS put downward pressure on fuel prices and improved price transparency

On 15 March 2021, the Tasmanian Government said that it was confident that FuelCheck TAS – the fuel price transparency scheme that started in September 2020 – was continuing to put downward pressure on fuel prices and improving price transparency for motorists.13

It noted that as at February 2021, 258 service stations across the state were registered to update fuel prices to the FuelCheck TAS website and there had been over 31,000 downloads of the app or visits to the website.

1.5 RACT found that real-time fuel price reporting in Tasmania saved motorists over $11 million since it was introduced

On 20 March 2021, the Royal Automobile Club of Tasmania (RACT) released its findings that in the 6 months since Tasmania implemented its real-time fuel price reporting scheme (which commenced on 20 September 2020) consumers had saved an estimated $11.6 million.14 It estimated that $4.7 million of these savings were recorded since the launch of the RACT’s Fuel Saver app in December 2020.

RACT commented that for the first time in 12 months Tasmanian motorists were paying fair prices for fuel due to increased price transparency and competition arising from consumers’ ability to monitor prices.

12 RAA SA, RAA urges drivers to cash in as real-time fuel pricing app launched, media release, 20 March 2021, at: https://our.raa.com.au/about-raa/media-releases/1457, accessed on 15 June 2021.

13 Elise Archer, Tasmanian Minister for Building and Construction, Tasmanian fuel prices now lower than the national average, media release, 15 March 2021, at: http://www.premier.tas.gov.au/site_resources_2015/additional_releases/tasmanian_fuel_prices_now_lower_than_the_national_average#:~:text=According%20to%20figures%20from%20the,national%20average%20of%20131.2%20cents, accessed on 15 June 2021.

14 RACT, RACT figures show real time fuel price reporting has saved motorists over $11 million, media release, 20 March 2021, at: https://www.ract.com.au/-/media/project/ract-group/ract/ract-website/community/news-and-media/media-releases/march-2021/ract-mr---fuel-prices---20-march-2021.pdf, accessed on 15 June 2021.

https://our.raa.com.au/about-raa/media-releases/1457

http://www.premier.tas.gov.au/site_resources_2015/additional_releases/tasmanian_fuel_prices_now_lower_than_the_national_average#:~:text=According to figures from the,national average of 131.2 cents



https://www.ract.com.au/-/media/project/ract-group/ract/ract-website/community/news-and-media/media-releases/march-2021/ract-mr---fuel-prices---20-march-2021.pdf

https://www.ract.com.au/-/media/project/ract-group/ract/ract-website/community/news-and-media/media-releases/march-2021/ract-mr---fuel-prices---20-march-2021.pdf


1.6 ExxonMobil announced the closure of its refinery at Altona

On 10 February 2021, ExxonMobil announced that it no longer considered its Altona refinery economically viable and would convert it to an import terminal.15

ExxonMobil commented that it made the decision following an extensive review of operations of the refinery. The review considered the competitive supply of products into Australia, declining domestic crude oil production, future capital investments, and the impacts of these factors on operating earnings led to its decision to close the refinery.

In 2019, the Altona refinery was the smallest refinery in Australia with a refining capacity of 5,220 ML per year.16 This represented 19% of total Australian refining capacity.

1.7 Fuel excise increasedThe Australian Government announced in the 2014–15 Budget that it would reintroduce biannual indexation, by the Consumer Price Index, of excise and excise-equivalent customs duty for all fuels except aviation fuels.17 Under these arrangements, which took effect from 10 November 2014, excise is generally increased on 1 February and 1 August each year.

On 1 February 2021, excise on petrol and diesel increased by 0.4 cpl to 42.7 cpl. Excise on automotive LPG increased by 0.1 cpl to 13.9 cpl.18

15 ExxonMobil Australia, ExxonMobil to convert Altona refinery to import terminal, media release, 10 February 2021, at: https://www.exxonmobil.com.au/News/Newsroom/News-releases-and-alerts/2021/Altona-refinery-2021, accessed on 15 June 2021.

16 Australian Institute of Petroleum, Downstream Petroleum, April 2020, at: https://www.aip.com.au/resources/downstream-petroleum, accessed on 15 June 2021.

17 Automatic twice-yearly indexation of excise on petrol commenced in 1983–84 and ceased in March 2001.

18 Australian Taxation Office, Excise duty rates for fuel and petroleum products, at: https://www.ato.gov.au/Business/Excise-on-fuel-and-petroleum-products/Lodging,-paying-and-rates---excisable-fuel/Excise-duty-rates-for-fuel-and-petroleum-products/, accessed on 15 June 2021.

https://www.exxonmobil.com.au/News/Newsroom/News-releases-and-alerts/2021/Altona-refinery-2021

https://www.aip.com.au/resources/downstream-petroleum

https://www.aip.com.au/resources/downstream-petroleum

https://www.ato.gov.au/Business/Excise-on-fuel-and-petroleum-products/Lodging,-paying-and-rates---excisable-fuel/Excise-duty-rates-for-fuel-and-petroleum-products/




2. ACCC Activities

2.1 ACCC and the petrol industryThe main role of the ACCC is to enforce the Competition and Consumer Act 2010 (the Act) across the Australian economy, including the fuel industry. The ACCC’s activities under the Act include enforcement and compliance, mergers and acquisitions assessments, authorisations and notifications, and administration of the Oil Code.19

Market forces determine wholesale and retail petrol prices in Australia. The ACCC does not set prices in petrol markets and does not have the powers to do so. In the absence of conduct that is in breach of the Act, high petrol prices are not illegal.

The ACCC’s petrol monitoring role is to assist consumers to navigate this complex industry. Through its petrol monitoring reports, industry reports and other information channels, the ACCC promotes transparency in the Australian petroleum industry and improved public awareness of the factors that determine retail petrol prices.

2.2 Activities in the March quarter 20212.2.1 7-Eleven applied to continue authorisation to continue trading

hours arrangements for an additional 6 months On 11 March 2021, 7-Eleven Stores Pty Limited (7-Eleven) sought authorisation to continue arrangements that were authorised by the ACCC in 2020.20

Authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Act. The ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

Under the arrangements authorised in 2020, 7-Eleven may approach some of its franchisees, and if they agree, enter into arrangements with them to either temporarily close or reduce the trading hours of certain stores. This may include stores operated by franchisees, and stores operated by 7-Eleven. 7-Eleven advised that the purpose of the conduct is to assist 7-Eleven and its franchisees to respond to and endure the COVID-19 pandemic in a cost-efficient manner, while supporting 7-Eleven’s customers.

7-Eleven’s existing authorisation for the same conduct was due to expire on 31 March 2021. 7-Eleven sought authorisation to continue the arrangements for an additional 6 months.

7-Eleven also requested interim authorisation. On 25 March 2021, the ACCC granted interim authorisation, subject to conditions. The conditions require 7-Eleven to notify the ACCC of the franchisees it proposes to approach for temporary store closure or a reduction in hours, and the stores (both corporate owned and franchised) which will be closed or have reduced hours.

The ACCC aims to make a final decision by July 2021.

19 The Oil Code is a prescribed mandatory industry code of conduct, the purpose of which is to regulate the conduct of suppliers, distributors and retailers in the downstream petroleum industry.

20 See: https://www.accc.gov.au/public-registers/authorisations-and-notifications-registers/authorisations-register/7-eleven-stores-pty-limited-0.

https://www.accc.gov.au/public-registers/authorisations-and-notifications-registers/authorisations-register/7-eleven-stores-pty-limited-0

https://www.accc.gov.au/public-registers/authorisations-and-notifications-registers/authorisations-register/7-eleven-stores-pty-limited-0


2.2.2 7-Eleven applied for authorisation to participate in Velocity’s loyalty program as a retail partner

On 24 March 2021, the ACCC received an application for authorisation from 7-Eleven on behalf of itself, its franchisees and Velocity Frequent Flyer Pty Ltd (Velocity).21

The Applicants sought authorisation for 7-Eleven to participate as a retail partner of Velocity’s loyalty program. The Applicants are also considering the potential appointment of 7-Eleven by Velocity as a redemption partner. Authorisation has been sought for 5 years. The Applicants have also requested interim authorisation.

On 7 May 2021, the ACCC granted interim authorisation to allow 7-Eleven to commence participation in the Velocity loyalty program while the ACCC considered the merits of the substantive application for authorisation.

On 11 June 2021, the ACCC issued a draft determination proposing to grant authorisation.

2.2.3 Stakeholder engagement and communications activityIn the March quarter 2021, the ACCC responded to fuel-related media enquiries on retail fuel prices, petrol price cycles, fuel price information and competition issues. Responses were prepared for general correspondence on fuel-related subjects including: retail fuel prices in larger cities, petrol price cycles, fuel taxation, retail competition, and regional petrol prices.

In the March quarter 2021, the fuel-related pages on the ACCC website received 146,646 page views, an increase of 32,953 page views (around 29%) from the previous quarter. Of this total, the petrol price cycles web page received 131,622 page views, an increase of 30,701 (around 30%) from the previous quarter. This was the most viewed page on the ACCC website in the March quarter 2021.

2.3 Report on petrol prices by major retailer in 2019 and 2020

On 8 June 2021, the ACCC released its second industry report under the petrol monitoring Direction issued by the Treasurer in December 2019. The report analysed annual average retail petrol prices in 2019 and 2020 to identify the highest and lowest priced major retailers in the 8 capital cities.

The report found that in 2020:

� an independent chain was the lowest priced major retailer in all capital cities

– United in Brisbane, Adelaide and Hobart, Metro Petroleum in Melbourne and Canberra, Speedway in Sydney, Vibe in Perth and FuelXpress in Darwin

� refiner-marketers were the highest priced retailer in most capital cities

– Coles Express in Brisbane and Canberra, BP company-owned and company-operated sites in Sydney and Melbourne and Caltex company-owned and company-operated sites in Adelaide

� in the other capital cities, the highest priced retailers were BP Sanzone (a BP-branded independent chain, in Perth), Puma Energy (in Darwin) and small independents (in Hobart).

The key messages of the report are provided in appendix A.

21 See: https://www.accc.gov.au/public-registers/authorisations-and-notifications-registers/authorisations-register/7-eleven-stores-pty-limited-and-velocity-frequent-flyer-pty-ltd.

https://www.accc.gov.au/public-registers/authorisations-and-notifications-registers/authorisations-register/7-eleven-stores-pty-limited-and-velocity-frequent-flyer-pty-ltd

https://www.accc.gov.au/public-registers/authorisations-and-notifications-registers/authorisations-register/7-eleven-stores-pty-limited-and-velocity-frequent-flyer-pty-ltd


3. Retail petrol price movements in the 5 largest cities

This chapter focusses on petrol prices in the 5 largest cities (Sydney, Melbourne, Brisbane, Adelaide and Perth). Petrol prices in the smaller capital cities (Canberra, Hobart and Darwin) and regional locations across Australia are analysed in chapter 5.

3.1 Retail prices in the 5 largest cities increased Average retail petrol prices increased in all 5 largest cities in the March quarter 2021. Average prices across the 5 largest cities were 133.4 cpl, an increase of 12.0 cpl from the December quarter 2020 (121.4 cpl).

Table 3.1 shows quarterly average retail prices in the March quarter 2021, the December quarter 2020 and the change, in each of the 5 largest cities.

Table 3.1: Quarterly average retail petrol prices in each of the 5 largest cities: December quarter 2020 and March quarter 2021 – cpl

Quarter Sydney22 Melbourne Brisbane Adelaide Perth 5 largest cities

Dec–20 122.4 126.3 126.0 114.1 117.8 121.4

Mar–21 132.8 136.2 135.6 132.1 130.3 133.4

Change 10.4 9.9 9.6 18.0 12.5 12.0

Source: ACCC calculations based on FUELtrac data.

Table 3.1 shows that in the March quarter 2021:

� Melbourne’s average retail prices were the highest (136.2 cpl). Melbourne also had the highest prices in the December quarter 2020.

� Perth’s average retail prices were the lowest (130.3 cpl). Adelaide had the lowest prices in the December quarter 2020.

� Prices increased the most in Adelaide (by 18.0 cpl) and the least in Brisbane (by 9.6 cpl).

3.2 Retail prices increased over the quarterChart 3.1 shows that 7-day rolling average retail petrol prices in the 5 largest cities were relatively stable in the second half of 2020, following record low prices on 29 April 2020.23 The last time 7-day rolling average prices were at this level was on 9 January 2005 (92.2 cpl).24 In the 6 months between July and December 2020, 7-day rolling average retail petrol prices were within a 21.4 cpl band between 133.8 cpl and 112.4 cpl.

22 The prices in this table for Sydney are E10 prices. For comparison purposes, quarterly average RULP prices in Sydney were 134.2 cpl in the March quarter 2021 and 123.7 cpl in the December quarter 2020.

23 Seven-day rolling average retail petrol prices in each of the 5 largest cities over the 2 years to 31 March 2021 are provided in chapter 5.

24 In real terms, they were the lowest recorded since the ACCC’s predecessor, the Prices Surveillance Authority, began collecting comprehensive retail prices in all 5 cities in May 1991.


Chart 3.1: Seven-day rolling average retail petrol prices in the 5 largest cities: 1 April 2019 to 31 March 2021cp

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Note: A 7-day rolling average price is the average of the current day’s price and prices on the 6 previous days. Traditionally, the ACCC has used a 7-day rolling average to smooth out the influence of petrol price cycles in the larger cities on price movements. This has been less effective in recent years because the duration of price cycles in most of the larger cities has become substantially greater than 7 days.

In the March quarter 2021, 7-day rolling average retail petrol prices trended upwards, reaching a high of 144.3 cpl on 8 March 2021. The last time 7-day rolling average retail petrol prices were this high was on 24 February 2020, before the influence of COVID-19. Average prices then decreased slightly to 140.3 cpl at the end the March quarter 2021.

3.3 The number and nature of price cycles in each city varied

Price cycles (i.e. the sudden, sharp increases in the price of petrol, followed by a gradual decline) are a prominent and longstanding feature of retail petrol prices in Australia’s 5 largest cities. These price cycles do not occur in the smaller capital cities or in most regional locations. Price cycles are the result of pricing decisions made by petrol retailers aiming to maximise profits. They only occur at the retail level; wholesale prices do not exhibit similar cyclical movements.

Table 3.2 shows that over the year to March 2021, the number of price cycles varied in the 5 largest cities.

Table 3.2: Number of price cycles per quarter in the 5 largest cities: June quarter 2020 to March quarter 2021

Quarter Sydney Melbourne Brisbane Adelaide Perth

Jun–20 2 2 2 7 13

Sep–20 2 2 3 7 14

Dec–20 3 2 3 4 13

Mar–21 2 2 3 7 13

Year to Mar–21 9 8 11 25 53


Notes: A price cycle occurs in a quarter if the peak of a price cycle takes place in that quarter.

Perth had a price cycle once a week. There were 14 cycles recorded in the September quarter 2020.


In the March quarter 2021, Adelaide had 3 more price cycles compared with the December quarter 2020 and Sydney had one less. The number of price cycles was unchanged in Melbourne, Brisbane and Perth.

In 2020 the average duration of price cycles in Sydney, Melbourne and Brisbane was around 5 to 6 weeks. Price cycles in Adelaide occurred more regularly, with an average duration of just over 2 weeks. This continued in the March quarter 2021.

Perth had the most price cycles throughout the year to March 2021, with price cycles occurring on a weekly basis (as they have done since 2011). The WA FuelWatch scheme, which has been operating since 2001, may be influencing the consistency of price cycles in Perth.

The ACCC released a report on petrol price cycles in Australia in December 2018.25 The report noted that while motorists find price cycles frustrating, they could use price cycles to their advantage to make substantial savings across the year. The report analysed petrol price cycles between 2007 and 2017. The ACCC is extending the analysis to cover more recent years and intends to release another report later this year.

The impact of the COVID-19 situation on retail petrol prices has led to some changes in the price cycles in each city (which are discussed in chapter 4).

3.4 Retail prices in Brisbane were higher than the other 4 largest cities in aggregate

Retail prices in Brisbane are generally the highest among the 5 largest cities. However, as in the December quarter 2020, in the March quarter 2021 Brisbane had the second highest prices after Melbourne.

Chart 3.2 shows quarterly average retail prices in Brisbane and average prices across the other 4 largest cities (Sydney, Melbourne, Adelaide and Perth) over the 2 years to the March quarter 2021. Over this period, Brisbane retail prices were on average 3.5 cpl higher than the average across the other 4 largest cities, ranging from a low of 1.5 cpl in the September quarter 2019 to a high of 5.8 cpl in the December quarter 2020.

Chart 3.2: Quarterly average retail prices in Brisbane and the other 4 largest cities in aggregate: June quarter 2019 to March quarter 2021

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25 ACCC, Petrol price cycles in Australia, 6 December 2018, at: https://www.accc.gov.au/publications/petrol-industry-reports/petrol-price-cycles-in-australia.

https://www.accc.gov.au/publications/petrol-industry-reports/petrol-price-cycles-in-australia



In the March quarter 2021, average retail prices in Brisbane (135.6 cpl) were 2.8 cpl higher than the other 4 largest cities in aggregate (132.8 cpl). This was 3.0 cpl lower than the differential in the December quarter 2020 (5.8 cpl).

In the year to March 2021, Brisbane retail prices were on average 3.9 cpl higher than the average across the other 4 largest cities. This was lower than the differential in calendar year 2020 (4.1 cpl).

The ACCC released its report on the Brisbane petrol market in October 2017.26 It noted that petrol prices in Brisbane had been significantly higher than those in the other 4 largest cities in the period 2009–10 to 2016–17. Over those 8 years, Brisbane motorists paid on average 3.3 cpl more for petrol than motorists in the other 4 largest cities.

The report found that the main factor influencing the higher prices in Brisbane was higher retail margins on petrol, which contributed to profits in Brisbane being significantly higher than the average across Australia. It also found that, compared with Sydney, retail pricing was less competitive in Brisbane, with retailers setting prices higher at the top and bottom of the price cycle than retailers in Sydney. Furthermore, Brisbane had fewer retail chains that were effective and vigorous price competitors. Brisbane had only 4 retailers in this category (7-Eleven, Woolworths, Puma Energy and United), while Sydney had 7 (Speedway, Metro, Budget, Westside, United, 7-Eleven and Woolworths).

3.5 Retail petrol prices in Australia were lower than in most OECD countries due to lower taxes

Compared with other developed countries, Australia’s retail petrol prices are relatively low. Chart 3.3 shows average retail premium unleaded petrol (PULP) 95 prices – both including and excluding taxes – among 33 countries in the Organisation for Economic Co-operation and Development (OECD) in the December quarter 2020 (the latest data available).

A degree of caution needs to be exercised when comparing international petrol prices, because fuel quality standards and taxation rates differ among countries, as does the availability and use of fuel types.

26 ACCC, Report on the Brisbane petrol market, 9 October 2017, at: https://www.accc.gov.au/publications/petrol-market-studies/report-on-the-brisbane-petrol-market.

https://www.accc.gov.au/publications/petrol-market-studies/report-on-the-brisbane-petrol-market

https://www.accc.gov.au/publications/petrol-market-studies/report-on-the-brisbane-petrol-market


Chart 3.3: Average retail PULP 95 prices and taxes in OECD countries: Australian cpl, December quarter 2020

Australian cpl

Price less tax Tax component Average price less tax

0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200 210 220 230 240 250 260

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Turkey

Canada

Chile

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Slovenia

Poland

Hungary

Czech Republic

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United Kingdom

Ireland

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Switzerland

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France

Belgium

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Israel

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Note: All international prices shown are for PULP 95 RON, except for New Zealand (96 RON).

The chart shows that, among OECD countries, Australia had the fifth-lowest retail PULP 95 prices. However, the main reason for the lower retail petrol prices in Australia is the relatively low rate of taxation on fuel. In the December quarter 2020, taxes made up around 40% of the retail PULP 95 price in Australia. This was much lower than in many other OECD countries – the average tax component on PULP 95 prices in the OECD was around 62% in the December quarter 2020. Excluding taxes, PULP 95 prices in Australia were the equal fourth-highest among OECD countries.

Chart 3.4 shows average retail RULP prices – both including and excluding taxes – among 8 OECD countries in the December quarter 2020. In the majority of OECD countries, RULP is not sold in significant quantities. The chart shows that Australia had the third-lowest retail RULP prices among these countries. Excluding taxes, RULP prices in Australia were the third-highest among OECD countries.




Chart 3.4: Average retail RULP prices and taxes in OECD countries: Australian cpl, December quarter 2020

Australian cpl

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0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190

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Canada

Australia

Chile

Korea

Austria

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New Zealand


3.6 The price differential between premium and regular unleaded petrol increased

Chart 3.5 shows that retail prices of the main grades of unleaded petrol – RULP, PULP 95, PULP 98, and E10 – all moved in a similar manner over the 2 years to March 2021.27

Chart 3.5: Monthly average retail prices of RULP, PULP 95, PULP 98 and E10 in the 5 largest cities: April 2019 to March 2021

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27 E10 prices are for Sydney and Brisbane only. RULP prices in Sydney are used in this section to calculate average RULP prices in the 5 largest cities.




In the March quarter 2021, the average differential in the 5 largest cities between:

� RULP and PULP 95 prices was 15.1 cpl (an increase of 0.2 cpl from the previous quarter)

� RULP and PULP 98 prices was 22.8 cpl (an increase of 0.4 cpl)

� E10 and RULP was 0.2 cpl (an increase of 1.9 cpl).28

Retail prices of the main grades of petrol move in a similar manner because they are all influenced by international refined petrol benchmark prices (which, in turn, predominantly move in line with changes in the international price of crude oil).

The ACCC noted in its 2020 industry report on the financial performance of the downstream petroleum industry that PULP 95 and PULP 98 have become more expensive relative to the retail price of RULP over time, and that PULP was significantly more profitable than other petrol products.29

Between 2009–10 and 2019–20, the annual average price differential in real terms between RULP and PULP 95 increased from 11.3 cpl to 14.3 cpl, an increase of 3.0 cpl. The annual average price differential between RULP and PULP 98 similarly increased from 17.2 cpl to 22.5 cpl, an increase of 5.3 cpl.

Higher average prices for PULP, relative to RULP, can be influenced by a variety of factors, including adjustments to specific international benchmarks and potentially changes in the quality of PULP products. However, the increases in PULP prices in recent years may be translating, at least in part, to higher profits on PULP.

28 In the December quarter 2020, average RULP prices were 1.7 cpl lower than average E10 prices.

29 ACCC, Financial performance of the Australian downstream petroleum industry 2002 to 2018, 22 April 2020, pp. 3–4, at: https://www.accc.gov.au/publications/petrol-industry-reports/financial-performance-of-the-australian-downstream-petroleum-industry-2002-to-2018.

https://www.accc.gov.au/publications/petrol-industry-reports/financial-performance-of-the-australian-downstream-petroleum-industry-2002-to-2018

https://www.accc.gov.au/publications/petrol-industry-reports/financial-performance-of-the-australian-downstream-petroleum-industry-2002-to-2018


4. Components of petrol prices in the 5 largest cities

There are 3 broad components of the retail price of petrol:

� the international price of refined petrol (Mogas 95)

� taxes (excise and GST)

� other costs and margins, at the wholesale and retail level.

This chapter analyses these price components in the March quarter 2021 and how they have changed over time.

4.1 Mogas 95 was the largest component of the price of petrol in the quarter

Chart 4.1 shows the components of the average retail petrol price in the 5 largest cities in the March quarter 2021.30

Chart 4.1: Components of the average retail petrol price in the 5 largest cities in the March quarter 2021

Other costs and marginsTaxesMogas 95

133.4 cpl

PETROL

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41

Source: ACCC calculations based on data from FUELtrac, Argus Media, RBA and ATO.

The chart shows that the 2 largest components of the pump price – Mogas 95 and taxes – accounted for 82% of the average price of petrol in the March quarter 2021. These components are largely outside the control of the local petrol retailers.

In the March quarter 2021, as a proportion of the average retail petrol price:

� Mogas 95 increased by 7 percentage points from the December quarter 2020

� taxes decreased by 3 percentage points from the December quarter 2020

� other costs and margins decreased by 4 percentage points from the December quarter 2020.

The tax component of the retail price of petrol was only marginally lower (0.4 cpl) than the Mogas 95 component in the March quarter 2021. In the previous 3 quarters, tax was the largest component of the retail price of petrol.

30 Taxes include fuel excise, and both the wholesale and retail components of GST.


4.2 Changes in Mogas 95 prices continued to significantly influence changes in retail prices

As Australia’s local refining capacity cannot produce all of Australia’s fuel needs, refined petrol is imported to Australia from international markets. The relevant international benchmark price for the wholesale price of petrol in Australia is the price of refined petrol in the Asia-Pacific region. For RULP, it is Singapore Mogas 95 Unleaded (Mogas 95). This benchmark is used for pricing petrol in Australia due to Australia’s proximity to Singapore, which is one of the world’s most important trading and refining centres.

The price of Mogas 95 is linked to the price of crude oil as crude oil is the major input into the production of refined petrol. Crude oil is an internationally traded commodity and its price is determined by global demand and supply factors. When the world price of crude oil changes it generally flows through into the price of refined petrol and then into retail petrol prices in Australia. Chapter 6 provides more details on movements in international crude oil and Mogas 95 prices.

Chart 4.2 shows monthly average Mogas 95 prices in Australian cents per litre, and monthly average retail petrol prices in the 5 largest cities, in the 2 years to March 2021. It shows that Mogas 95 prices and retail petrol prices in the 5 largest cities moved in a similar pattern over the past 2 years, indicating that, in aggregate, changes in domestic retail prices are generally driven by changes in the international price of refined petrol.

Chart 4.2: Monthly average retail petrol prices in the 5 largest cities and Mogas 95 prices: April 2019 to March 2021

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In the year to March 2021:

� monthly average Mogas 95 prices increased by 39.4 cpl (from 20.5 cpl in April 2020 to 59.9 cpl in March 2021)

� monthly average retail prices in the 5 largest cities increased by 38.0 cpl (from 102.6 cpl in April 2020 to 140.6 cpl in March 2021).


In the March quarter 2021:

� monthly average Mogas 95 prices increased from 44.7 cpl in December 2020 to 59.9 cpl in March 2021 (an increase of 15.2 cpl), and monthly average retail prices in the 5 largest cities increased from 124.7 cpl in December 2020, to 140.6 cpl in March 2021 (an increase of 15.9 cpl)

� quarterly average Mogas 95 prices were 54.8 cpl, an increase of 12.9 cpl from the December quarter 2020, and quarterly average retail petrol prices in the 5 largest cities were 133.4 cpl, an increase of 12.0 cpl from the December quarter 2020.

Monthly average Mogas 95 prices in March 2021 were back to levels last reached in February 2020, reflecting a rebound in international crude oil and refined petrol prices following a year when prices decreased substantially.

4.2.1 The AUD–USD exchange rate was higher in the quarterThe AUD–USD exchange rate has a significant influence on Australia’s retail petrol prices, because international refined petrol is bought and sold in US dollars in global markets.

Chart 4.3 shows that the daily AUD–USD exchange rate increased substantially over the 2 years to 31 March 2021.

Chart 4.3: Daily AUD–USD exchange rates: 1 April 2019 to 31 March 2021

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Note: Exchange rates are the daily RBA 4.00 pm closing rates. See: http://www.rba.gov.au/statistics/frequency/exchange-rates.html.

In the year to March 2021, the exchange rate increased from US 60 cents in early April 2020 to a high of US 80 cents in late February 2021 (the highest level since January 2018).

In the March quarter 2021, the AUD–USD exchange rate remained relatively stable in a US 4 cents band, at an average of US 77 cents. This was US 4 cents higher than the average AUD–USD exchange rate in the December quarter 2020.

Appreciation of the AUD against the USD puts downward pressure on domestic retail petrol prices, as refined petrol sold on international markets becomes relatively cheaper in AUD terms. If the AUD–USD exchange rate had been at the April 2020 low of US 60 cents in the March quarter 2021, average retail petrol prices in Australia would have been around 16.9 cpl higher (everything else being equal). This indicates the significant impact the AUD–USD exchange rate has on retail petrol prices.

http://www.rba.gov.au/statistics/frequency/exchange-rates.html

http://www.rba.gov.au/statistics/frequency/exchange-rates.html


4.3 Gross indicative retail differences were lower in the quarter

Gross indicative retail differences (GIRDs) are a broad indicator of gross retail margins. They are calculated by subtracting average TGPs from average retail petrol prices. TGPs are the prices at which petrol can be purchased from wholesalers in the spot market and are posted on a regular basis on the websites of the major wholesalers. Although few wholesale transactions occur at TGPs, they can be regarded as indicative wholesale prices. TGPs, which vary across brands and cities, reflect the wholesale price of petrol only, and exclude other retail operating costs (such as freight, branding and other costs of doing business including rent, wages and utility costs).

GIRDs are a broad indicator of gross retail margins, and should not be confused with actual retail profits which are more closely related to net margins.

The GIRDs reported by the ACCC are averages across the 5 largest cities over time. The level of prices, costs and profits vary significantly between retail operations and not all retail petrol sites will be achieving these gross margins. Some will be achieving higher gross margins, others lower. The ACCC petrol market studies found that profits per retail petrol site could vary considerably between retailers, with some retail sites making substantial profits and others making very little.

4.3.1 Quarterly average GIRDs across the 5 largest cities were lowerAverage GIRDs in the 5 largest cities were 15.8 cpl in the March quarter 2021, a decrease of 1.6 cpl from the previous quarter (see table 4.1). Average GIRDs decreased in all cities except Adelaide in the quarter.


Table 4.1: Quarterly average retail petrol prices, TGPs and GIRDs in the 5 largest cities: June quarter 2020 to March quarter 2021 – cpl

Location Quarter Retail prices TGPs GIRDs

5 largest cities Jun–20 109.0 93.1 15.9

Sep–20 122.1 103.4 18.7

Dec–20 121.4 104.0 17.4

Mar–21 133.4 117.6 15.8

Year to Mar–21 121.4 104.5 16.9

Sydney Jun–20 107.8 94.9 12.9

Sep–20 119.0 104.6 14.4

Dec–20 122.4 105.2 17.2

Mar–21 132.8 118.2 14.6

Year to Mar–21 120.5 105.7 14.8

Melbourne Jun–20 110.4 92.7 17.7

Sep–20 125.6 103.0 22.6

Dec–20 126.3 103.6 22.7

Mar–21 136.2 117.1 19.1

Year to Mar–21 124.6 104.1 20.5

Brisbane Jun–20 110.6 92.8 17.8

Sep–20 126.1 103.4 22.7

Dec–20 126.0 104.1 21.9

Mar–21 135.6 117.4 18.2

Year to Mar–21 124.6 104.4 20.2

Adelaide Jun–20 110.0 93.0 17.0

Sep–20 121.1 103.3 17.8

Dec–20 114.1 103.9 10.2

Mar–21 132.1 117.5 14.6

Year to Mar–21 119.3 104.4 14.9

Perth Jun–20 106.3 92.1 14.2

Sep–20 118.9 102.8 16.1

Dec–20 117.8 103.3 14.5

Mar–21 130.3 117.7 12.6

Year to Mar–21 118.3 103.9 14.4

Source: ACCC calculations based on data from FUELtrac, Ampol, bp, Mobil, Viva Energy and WA FuelWatch.

Note: Retail prices, TGPs and GIRDs in Sydney are for E10.


Table 4.1 shows that in the 5 largest cities over the year to March 2021, quarterly average GIRDs:

� varied significantly over time and across cities, ranging from a high of 22.7 cpl (in Brisbane in the September quarter 2020 and Melbourne in the December quarter 2020) to a low of 10.2 cpl (in Adelaide in the December quarter 2020)

� were lowest in Sydney, Melbourne and Brisbane in the June quarter 2020, lowest in Adelaide in the December quarter 2020, and lowest in Perth in the March quarter 2021

� were highest in Sydney and Melbourne in the December quarter 2020, and highest in Brisbane, Adelaide and Perth in the September quarter 2020.

Chart 4.4 shows quarterly average GIRDs in the 5 largest cities over the past 3 years from the June quarter 2018 to the March quarter 2021.

It shows that average GIRDs across the 5 largest cities decreased in the 2 quarters following the record high GIRDs in the September quarter 2020 (18.7 cpl).

Chart 4.4: Quarterly average GIRDs in the 5 largest cities: June quarter 2018 to March quarter 2021

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Source: ACCC calculations based on data from FUELtrac, AIP, Ampol, bp, Mobil, Viva Energy and WA FuelWatch.

The chart also shows that GIRDs can be volatile on a quarterly basis. When TGPs increase by large amounts in a short period, lags between changes in TGPs and changes in retail prices often have the effect of reducing GIRDs in the short term. Conversely, when TGPs decrease by large amounts in a short period these lags often have the effect of increasing GIRDs.

4.3.2 Longer term average GIRDs were lower in the March quarter 2021, but remained relatively high

The effects of the lags between changes in TGPs and retail prices, and their impact on GIRDs, is less prevalent when GIRDs are considered over a longer period.

Chart 4.5 shows 12-month average GIRDs in real terms across the 5 largest cities, calculated at the end of each quarter over the last 6 years.31

31 I.e. using average retail prices and average TGPs over 12-month periods to the end of each quarter.


Chart 4.5: Twelve-month average GIRDs in the 5 largest cities in real terms: June 2015 to March 2021

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Source: ACCC calculations based on data from FUELtrac, Informed Sources, Ampol, bp, Mobil, Viva Energy and WA FuelWatch, and Australian Bureau of Statistics, 6401.0 Consumer Price Index, Australia, March 2021, Tables 1 and 2. CPI: All Groups, Index Numbers and Percentage Changes, at: https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release#data-download, accessed on 15 June 2021.

Note: Real prices are shown in March 2021 dollars.

The chart shows that across the 5 largest cities there was a substantial increase in 12-month average GIRDs between December 2019 and December 2020 (of 4.4 cpl). In the year to December 2020, 12-month average GIRDs increased to their highest level on record in both nominal and real terms. Twelve-month average GIRDs decreased marginally in the year to March 2021, but remained high relative to pre-2020 levels.

The chart also shows that:

� there was a substantial increase in 12-month average GIRDs between June 2015 and March 2016 (of 2.7 cpl)

� between March 2016 and December 2019, 12-month average GIRDs were in a 1.6 cpl band between 11.3 cpl and 12.9 cpl.

The ACCC analysed financial data provided by petrol companies on retail gross profits (i.e. retail operating costs and net profits) from 2005–06 to 2017–18 to further understand the reasons for the higher GIRDs from 2014–15 onwards.32 The analysis found that both retail operating costs and net profits on RULP increased during the period, and particularly between 2013–14 and 2016–17, suggesting that higher GIRDs had been influenced by increases in both operating costs and profits.33

4.3.3 Lower turnover of petrol likely continued to influcence the high GIRDs in the March quarter 2021

The effects of COVID-19 on petrol demand very likely contributed to the high GIRDs in 2020, and may have continued to influence GIRDs in the March quarter 2021.

Sales volumes have been significantly affected since early 2020 and retailers may have been keeping retail prices higher to cover their fixed costs

Petrol retailing is a high-volume low-margin business with many fixed costs (such as rent and the cost of using a particular brand). This means that when sales volumes decline, the cost per unit of petrol will

32 ACCC, Financial performance of the Australian downstream petroleum industry 2002 to 2018, 22 April 2020, pp. 34–36.

33 The analysis compared GIRDs (which are based on price data) with retail gross profit financial results on RULP (which are based on financial data). Both measures, although not directly comparable, showed a broadly similar upward trend over the longer term.

https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release#data-download

https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release#data-download


increase. To generate revenue to partially cover their fixed costs, some retailers may have been setting retail prices higher than they otherwise would.

As discussed in chapter 1, national demand for petrol in the March quarter 2021 remained lower than pre-pandemic levels, and was lower than in the December quarter 2020. Therefore, despite the recovery in sales volumes in many jurisdictions in the second half of 2020, it is likely that lower sales volumes continued to have a financial impact on some retailers in the March quarter 2021.

Some vertically-integrated participants reported losses at the refining level and stronger retail fuel margins in 2020

The substantial decrease in petrol demand since March 2020 has had negative implications for refineries throughout the world. Australian refineries experienced temporary shutdowns and reported losses in calendar year 2020. For example:

� on 22 February 2021, Ampol announced losses of $145.0 million at its Lytton refinery in 2020 (compared with profits of $70 million in 2019)34

� on 24 February 2021, Viva Energy announced losses of $95.1 million at its Geelong refinery in 2020 (compared with profits of $117.0 million in 2019).35

In February 2021, ExxonMobil announced that it no longer considered its Altona refinery to be economically viable and that it would convert it to an import terminal. This news followed bp’s announcement in October 2020 that it would cease fuel production at its Kwinana refinery in Western Australia and convert it to an import terminal.

In February 2021, when reporting on their financial results in 2020, both Viva Energy and Ampol noted higher retail margins in 2020:

� Viva Energy stated that ‘improvement in retail fuel margins over 2020 more than offset the decline in retail sales volumes’.36

� Ampol stated that ‘retail fuel earnings were supported by higher margins, including the benefits from oil price timing lags, offsetting volume weakness’.37

4.3.4 Changes in petrol price cycles in 2020 continued in the quarterThe higher GIRDs in the 5 largest cities during 2020 were reflected in changes in petrol price cycles.38 These changes continued in the March quarter 2021.

The shape of the price cycles are illustrated in charts 4.6 to 4.10, which show daily average retail petrol prices, TGPs and GIRDs in Perth, Melbourne, Brisbane, Sydney and Adelaide respectively for the period from 1 July 2019 to 31 March 2021.

Changes in the shape of the price cycles were different across the cities:

� While regular weekly price cycles continued in Perth throughout 2020, chart 4.6 shows that the average GIRD at the peak of the price cycle increased following the impact of COVID-19. This continued in the March quarter 2021.

� Charts 4.7 and 4.8 show the shape of the price cycles in Melbourne and Brisbane respectively. Following the impact of COVID-19, average retail prices in both cities took longer to reach the trough price of the price cycle. When they did, there was a larger difference between the trough price and average TGPs. This continued in the March quarter 2021.

34 Ampol, Financial results for full year ended 31 December 2020, ASX release, 22 February 2021, p.1, at: https://www.ampol.com.au/about-ampol/investor-centre/asx-announcements, accessed on 15 June 2021. In April 2021, Ampol stated that Lytton EBIT was breakeven in 1Q 2021. See Unaudited financial results for 1Q 2021, ASX release, 15 April 2021, at: https://www.ampol.com.au/about-ampol/investor-centre/asx-announcements, accessed on 15 June 2021.

35 Viva Energy Australia, Viva Energy Results: Financial Year ended 31 December 2020, ASX release, 24 February 2021, p. 1, at: https://investor.vivaenergy.com.au/investor-centre/?page=asx-announcements, accessed on 15 June 2021.

36 Viva Energy, Viva Energy Results: Financial Year ended 31 December 2020, p. 3.

37 Ampol, Financial results for full year ended 31 December 2020, p. 2.

38 Petrol price cycles in the 5 largest cities are not static and change over time. The ACCC’s 2018 petrol price cycles report analysed changes in price cycles between 2007 and 2017.





https://investor.vivaenergy.com.au/investor-centre/?page=asx-announcements


� Charts 4.9 shows that average retail prices in Sydney took longer to reach the trough price following the impact of COVID-19. When they did, there was a larger difference between the trough price and average TGPs. Average prices generally fell closer to TGPs at the trough price as the year progressed, however this difference increased in the March quarter 2021.

� Chart 4.10 shows that in Adelaide, although there were occasions when the price cycle did not get as close to TGPs as it had previously at the trough price, prices generally decreased to being either very close to, or below, TGPs in the second half of 2020. This trend continued in the March quarter 2021.

Chart 4.6: Daily average retail petrol prices, TGPs and GIRDs in Perth: 1 July 2019 to 31 March 2021

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Chart 4.7: Daily average retail petrol prices, TGPs and GIRDs in Melbourne: 1 July 2019 to 31 March 2021

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Chart 4.8: Daily average retail petrol prices, TGPs and GIRDs in Brisbane: 1 July 2019 to 31 March 2021

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Chart 4.9: Daily average retail petrol prices, TGPs and GIRDs in Sydney: 1 July 2019 to 31 March 2021

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Chart 4.10: Daily average retail petrol prices, TGPs and GIRDs in Adelaide: 1 July 2019 to 31 March 2021

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These continuing changes to the shape of the price cycles have contributed to the relatively high GIRDs in the March quarter 2021.

Table 4.2 shows for calendar years 2019 and 2020, and the March quarter 2021, the average GIRD on days when prices were at the top of the price cycle (peak days), and the average GIRD on days when prices were at the bottom of the price cycle (trough days), in each of the 5 largest cities.

Table 4.2: Average GIRDs in the 5 largest cities on peak and trough days of the price cycle: calendar years 2019 and 2020 and March quarter 2021 – cpl

Peak days Trough days

2019 2020 Mar–21 2019 2020 Mar–21

Sydney 24.4 30.4 30.7 -0.4 1.8 3.4

Melbourne 27.4 35.8 38.7 1.9 6.7 6.9

Brisbane 31.0 39.4 39.5 2.1 5.9 4.4

Adelaide 30.2 34.1 29.5 0.0 0.7 -0.8

Perth 20.7 28.1 31.9 0.8 2.4 -0.9


Notes: GIRDs in Sydney are for E10.

A negative average GIRD means that the average retail price is below the average TGP.

The table shows that, compared with 2019, prices in 2020 increased further above TGPs at the peak of the price cycles, and did not decrease as close to TGPs at the troughs of the price cycles.

In the March quarter 2021, the average GIRD on peak days in Sydney, Melbourne, Brisbane and Perth increased compared with calendar year 2020. In Adelaide it decreased. The average GIRD on trough days in Sydney and Melbourne increased compared with calendar year 2020, and in Brisbane, Adelaide and Perth it decreased. In Adelaide and Perth, the average GIRD on trough days was lower than it was in calendar year 2019. In both cities the average GIRD on trough days was negative.


4.4 The increase in Mogas prices was the main contributor to higher retail prices in the quarter

Chart 4.11 shows the change in the components of retail petrol prices across the 5 largest cities between the December quarter 2020 and March quarter 2021. The chart separates the other costs and margins component into:

� the retail component (represented by GIRDs)

� the other wholesale costs and margins component (which includes international shipping costs and import costs).

Chart 4.11: Changes in the components of average retail petrol prices across the 5 largest cities: December quarter 2020 to March quarter 2021

Dec–20 Mogas 95 Exchange rate Other wholesalecosts and margins

Taxes GIRDs Mar–21

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Source: ACCC calculations based on data from FUELtrac, Argus Media, Ampol, bp, Mobil, Viva Energy, WA FuelWatch, RBA and ATO.

Notes: All prices are in Australian cents per litre.

The taxes component includes fuel excise and wholesale GST. The small amount of retail GST is included in GIRDs rather than in taxes, to be consistent with GIRDs reported elsewhere in this report.

The chart shows that the increase in the average retail price of petrol in the 5 largest cities by 12.0 cpl in the March quarter 2021 was largely a result of a large increase in Mogas 95 prices.

A significant determinant of Australia’s retail petrol prices is the AUD–USD exchange rate. Excluding the effect of changes in the AUD–USD exchange rate (which increased by US 4 cents in the quarter), Mogas 95 prices would have increased by 16.1 cpl in the quarter. However, the higher AUD–USD exchange rate offset the influence of the increase in Mogas 95 prices by 3.2 cpl. The net effect of movements in Mogas 95 prices and the AUD–USD exchange rate was that Mogas 95 prices in Australian cents per litre increased by 12.9 cpl.


5. Retail petrol price movements in the smaller capital cities and in regional locations

This chapter analyses petrol prices in the 3 smaller capital cities (Canberra, Hobart and Darwin) and in regional locations. The ACCC monitors fuel prices in over 190 regional locations across Australia. These locations are listed in appendix B.

5.1 Retail prices in Darwin and Canberra were below the 5 largest cities in aggregate

In the March quarter 2021, average retail prices increased in all 3 smaller capital cities: Darwin by 10.0 cpl, Canberra by 9.9 cpl and Hobart by 9.5 cpl.39 However, average retail prices in Darwin and Canberra were below the 5 largest cities in aggregate.

Table 5.1 shows quarterly average retail prices in the March quarter 2021, the December quarter 2020, and the change, in the 3 smaller capital cities and in the 5 largest cities in aggregate. It also shows the differential between quarterly average prices in each of the smaller capitals and the 5 largest cities.

Table 5.1: Quarterly average retail petrol prices in each of the smaller capital cities and the 5 largest cities in aggregate: December quarter 2020 and March quarter 2021 – cpl

Quarter Canberra Hobart Darwin 5 largest citiesDifferential

Canberra Hobart Darwin

Dec–20 122.0 124.2 116.4 121.4 0.6 2.8 -5.0

Mar–21 131.9 133.7 126.4 133.4 -1.5 0.3 -7.0

Change 9.9 9.5 10.0 12.0 -2.1 -2.5 -2.0

Source: ACCC calculations based on FUELtrac data.

Chart 5.1 shows monthly average prices in the smaller capital cities and the 5 largest cities in the 2 years to March 2021.

39 Seven-day rolling average retail petrol prices in each of the 3 smaller capital cities over the 2 years to 31 March 2021 are provided in section 5.3.


Chart 5.1: Monthly average retail petrol prices in Canberra, Hobart, Darwin and the 5 largest cities: April 2019 to March 2021

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The chart shows that, in the year to March 2021, monthly average retail prices were:

� higher in Hobart than in the 5 largest cities in all months except January 2021

� lower in Darwin than in the 5 largest cities in all months except April and May 2020

� lower in Canberra than in the 5 largest cities since December 2020 as well as in June and July 2020.

5.2 Average regional prices were again lower than prices in the 5 largest cities

Prices have historically been higher in regional locations. A number of factors may contribute to these higher prices, including:

� a lower level of local competition

� lower volumes of fuel sold

� distance/location factors

� lower convenience store sales.

The influence of these factors varies significantly from location to location. This means that there may be substantial differences in prices between specific regional locations.

Despite these factors, in recent quarters average prices in regional locations have been lower than average prices in the 5 largest capital cities.

In the March quarter 2021, average prices in regional locations in aggregate (regional prices) were 130.1 cpl. This was 3.3 cpl lower than average prices in the 5 largest cities (133.4 cpl). In the December quarter 2020, average regional prices were 1.9 cpl lower than average prices in the 5 largest cities. While prices in regional locations are typically higher than in the capital cities, this was the third consecutive quarter when average regional prices were lower than prices in the 5 largest cities.


Possible factors that could be contributing to retail prices in regional locations being lower than prices in the 5 largest cities include:

� Less frequent COVID-19 restrictions and lockdowns in regional locations than occurred in the 5 largest cities.

– Petrol retailers in the 5 largest cities, faced with a reduction in demand associated with COVID-19 restrictions and lockdowns, may have been forced to increase retail prices to partially cover their fixed costs. As demand may have been more stable in many regional locations, retailers in those locations may not have increased their retail prices by as much.

� GIRDs in regional locations over the past year may not have increased by as much as the increase in GIRDs in the 5 largest cities.

Chart 5.2 shows that monthly average regional prices increased over the March quarter 2021. In January 2021, monthly average regional prices were 123.4 cpl, an increase of 3.2 cpl from December 2020 (120.2 cpl). Monthly average prices increased to 129.7 cpl in February 2021 and increased again to 137.0 cpl in March 2021.

Chart 5.2: Monthly average retail petrol prices in regional locations in aggregate and the 5 largest cities: April 2019 to March 2021

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Between December 2020 and March 2021, monthly average prices in regional locations increased by 16.8 cpl, which was 0.9 cpl higher than the increase across the 5 largest cities over the same period (15.9 cpl).

The monthly average differential between regional prices and prices in the 5 largest cities varied substantially over the year to March 2021, ranging from 18.3 cpl above the 5 largest cities in April 2020 to 4.5 cpl below in December 2020.

In the March quarter 2021, average prices in 146 locations (representing around 81% of monitored locations) were lower than the average price in the 5 largest cities.

Appendix B has further information on petrol price movements in the March quarter 2021 in all locations the ACCC monitors.


5.3 The difference between regional and city prices varies between jurisdictions

Charts 5.3 to 5.9 show 7-day rolling average retail petrol prices in regional locations in each state and the Northern Territory, along with those of the relevant capital city, from 1 April 2019 to 31 March 2021. These charts also show the average differential between prices in regional locations in the state/territory and the respective capital city in the December quarter 2020, March quarter 2021, the year to 31 March 2020 and the year to 31 March 2021.

The charts show that:

� In the March quarter 2021, average regional prices were lower than average capital city prices in New South Wales, Victoria, Queensland, South Australia and Tasmania, and higher in Western Australia and the Northern Territory.

– This differential ranged from regional prices being on average 7.6 cpl lower in Victoria, to being 10.2 cpl higher in the Northern Territory.

� Compared with the December quarter 2020, in the March quarter 2021, average prices in regional locations were relatively lower compared with their capital city in all jurisdictions except Victoria and Queensland.

� In the year to March 2021, average regional prices were lower than average capital city prices in Victoria, Queensland, South Australia and Tasmania, and higher in New South Wales, Western Australia and Northern Territory.

– This differential ranged from regional prices being on average 6.0 lower in Victoria, to being 10.5 cpl higher in the Northern Territory.

� Compared with the year to March 2020, in the year to March 2021, average prices in regional locations were relatively lower compared with their capital city in all jurisdictions except Tasmania.

– In Victoria, Queensland and Tasmania, average regional prices were lower than capital city prices in both the year to March 2020 and the year to March 2021.

Chart 5.3: Seven-day rolling average petrol prices in New South Wales regional locations and Sydney: 1 April 2019 to 31 March 2021

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New South Wales regional locations Sydney

Year to Mar–20 avg: 4.3 cpl

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Mar-21 avg: –3.1 cpl

Dec–20 avg: –2.6 cpl



Notes: E10 prices are used for Sydney and RULP prices are used for all New South Wales regional locations.

A 7-day rolling average price is the average of the current day’s price and prices on the 6 previous days.

A negative number means that average regional prices are lower than average capital city prices.


Chart 5.4: Seven-day rolling average petrol prices in Victorian regional locations and Melbourne: 1 April 2019 to 31 March 2021

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Victorian regional locations Melbourne

Year to Mar–20 avg: -1.1 cpl

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Notes: A 7-day rolling average price is the average of the current day’s price and prices on the 6 previous days.


Chart 5.5: Seven-day rolling average petrol prices in Queensland regional locations and Brisbane: 1 April 2019 to 31 March 2021

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Queensland regional locations Brisbane


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Chart 5.6: Seven-day rolling average petrol prices in South Australian regional locations and Adelaide: 1 April 2019 to 31 March 2021

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South Australian regional locations Adelaide


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Dec–20 avg: 3.5 cpl





Chart 5.7: Seven-day rolling average petrol prices in Western Australian regional locations and Perth: 1 April 2019 to 31 March 2021

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Western Australian regional locations Perth


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Mar–21 avg: 3.0 cpl




Note: A 7-day rolling average price is the average of the current day’s price and prices on the 6 previous days.


Chart 5.8: Seven-day rolling average petrol prices in Tasmanian regional locations and Hobart: 1 April 2019 to 31 March 2021

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Tasmanian regional locations Hobart


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Mar–21 avg: -0.3 cpl

Dec–20 avg: -0.2 cpl





Chart 5.9: Seven-day rolling average petrol prices in Northern Territory regional locations and Darwin: 1 April 2019 to 31 March 2021

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Northern Territory regional locations Darwin


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Mar–21 avg: 10.2 cpl






Charts 5.3 to 5.9 show that price cycles in many capital cities significantly influence price comparisons between capital cities and regional locations over the short term. An example is the price differential between Sydney and regional locations in New South Wales in May 2020.

Chart 5.10 shows 7-day rolling average retail petrol prices in Canberra from 1 April 2019 to 31 March 2021. There are no prices available for locations in the Australian Captial Territory other than Canberra.

Chart 5.10: Seven-day rolling average petrol prices in Canberra: 1 April 2019 to 31 March 2021

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The ACCC undertook 4 regional petrol market studies between 2015 and 2017. These studies examined petrol markets in Darwin, Launceston, Armidale and Cairns. The ACCC has continued to monitor and report on petrol prices and GIRDs in these locations over time. Data on average retail petrol prices and GIRDs for each location is shown in appendix C.


6. Crude oil and refined petrol price movements

The main influences on movements in retail petrol prices in Australia are the international price of refined petrol (which, in turn, is influenced by the price of crude oil) and the AUD–USD exchange rate.

Crude oil prices are an important influence on movements in refined petrol prices around the world. There are a number of international benchmarks used for pricing crude oil, including West Texas Intermediate (WTI), Brent, Tapis and Dubai. The most widely used benchmark in global markets is Brent crude oil.

The relevant international benchmark price for petrol in Australia is the price of refined petrol in the Asia-Pacific region. For RULP, it is Singapore Mogas 95 Unleaded (Mogas 95). Pricing petrol in Australia uses this benchmark due to Australia’s proximity to Singapore, which is one of the world’s most important trading and refining centres.

Movements in the AUD–USD exchange rate are shown in chapter 4.

6.1 Crude oil and refined petrol prices increasedChart 6.1 shows movements in weekly average Brent crude oil and Mogas 95 prices in the 2 years to March 2021.

Chart 6.1: Weekly average Brent crude oil and Mogas 95 prices: April 2019 to March 2021

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Source: ACCC calculations based on data from Argus Media and OPIS.

From April to December 2019 weekly average Brent crude oil prices were within a USD 15 per barrel band between around USD 73 per barrel and around USD 58 per barrel. In early 2020 prices began trending downwards before decreasing sharply to around USD 12 per barrel in late April 2020.40 They then increased to around USD 46 per barrel in August 2020, before decreasing to around USD 37 per barrel in late October 2020. From then until the end of 2020 prices increased steadily to around USD 51 per barrel.

For most of the March quarter 2021, weekly average Brent crude oil prices continued to increase, reaching a peak of around USD 68 per barrel in mid-March 2021, before decreasing to around USD 63 per barrel at the end of March 2021.

40 Weekly average Brent crude oil prices were last at this level in early March 1999 (in nominal terms).


Weekly average Mogas 95 prices moved in a similar manner to Brent crude oil prices over the 2-year period. They were within a USD 18 per barrel band between around USD 83 per barrel and around USD 65 per barrel from April to December 2019. Mogas 95 prices similarly decreased sharply, to around USD 19 per barrel in late April 2020.41 They then increased to around USD 49 per barrel in August 2020 before decreasing to around USD 43 per barrel in early November 2020. From then until the end of 2020 Mogas 95 prices increased steadily to around USD 54 per barrel.

In the March quarter 2021, weekly average Mogas 95 prices continued to increase. They reached a peak of around USD 75 per barrel in mid-March 2021, before decreasing to around USD 71 per barrel at the end of March 2021.

Quarterly average Brent crude oil and Mogas 95 prices were significantly higher in the March quarter 2021 compared with the December quarter 2020:

� quarterly average Brent crude oil prices were around USD 61 per barrel (an increase of USD 17 per barrel, or around 39%, from the previous quarter)

� quarterly average Mogas 95 prices were around USD 67 per barrel (an increase of USD 18 per barrel, or around 37%, from the previous quarter).

6.2 The OPEC cartel and COVID-19 were the main factors influencing crude oil prices

Two factors largely influenced movements in crude oil prices over the past 2 years:

� agreements (and, at times, disagreements) made by the Organisation of the Petroleum Exporting Countries (OPEC) cartel, and some other crude oil producing countries (including Russia), to cut production

� the influence of the COVID-19 pandemic.

OPEC and some other crude oil producing countries continued previous crude oil production cuts throughout 2019, and into early 2020.42 In December 2019, they agreed to an increase in production cuts until 31 March 2020, increasing the agreed cuts from 1.2 million barrels per day to 1.7 million barrels per day.43

From mid-January 2020 news coming out of China about the COVID-19 outbreak, and its impact on Chinese economic activity, led to a fall in crude oil prices. On 30 January 2020, the World Health Organisation declared the virus a Public Health Emergency of International Concern.44 As countries imposed restrictions on travel and economic activity, demand for crude oil and refined petrol products decreased significantly.

The inability of the OPEC cartel and other crude oil producing countries to agree on further production cuts at their meeting on 5 March 2020 compounded this decrease in demand. On 6 March 2020, Saudi Arabia (the world’s largest oil exporter) boosted production to its full capacity of 12.3 million barrels per day. Saudi Arabia also announced discounts of almost 20% in key markets. The result was an immediate drop of more than 30% in crude oil prices.45

41 Weekly average Mogas 95 prices were last at this level in mid-June 1999 (in nominal terms).

42 Reuters, OPEC extends oil cut to prop up prices as economy weakens, 1 July 2019, at: https://www.reuters.com/article/us-oil-opec/opec-extends-oil-cut-to-prop-up-prices-as-economy-weakens-idUSKCN1TW1LF, accessed on 15 June 2021.

43 OPEC, The 7th OPEC and non-OPEC Ministerial Meeting concludes, media release, 6 December 2019, at: https://www.opec.org/opec_web/en/press_room/5797.htm, accessed on 15 June 2021.

44 World Health Organisation, Statement on the second meeting of the International Health Regulations (2005) Emergency Committee regarding the outbreak of novel coronavirus (2019-nCoV), 30 January 2020, at: https://www.who.int/news-room/detail/30-01-2020-statement-on-the-second-meeting-of-the-international-health-regulations-(2005)-emergency-committee-regarding-the-outbreak-of-novel-coronavirus-(2019-ncov), accessed on 15 June 2021.

45 The World Bank, Coping with a Dual Shock: COVID-19 and Oil Prices, Brief, 14 April 2020, at: https://www.worldbank.org/en/region/mena/brief/coping-with-a-dual-shock-coronavirus-covid-19-and-oil-prices, accessed on 15 June 2021.

https://www.reuters.com/article/us-oil-opec/opec-extends-oil-cut-to-prop-up-prices-as-economy-weakens-idUSKCN1TW1LF

https://www.reuters.com/article/us-oil-opec/opec-extends-oil-cut-to-prop-up-prices-as-economy-weakens-idUSKCN1TW1LF

https://www.opec.org/opec_web/en/press_room/5797.htm


https://www.who.int/news-room/detail/30-01-2020-statement-on-the-second-meeting-of-the-international-health-regulations-(2005)-emergency-committee-regarding-the-outbreak-of-novel-coronavirus-(2019-ncov)



https://www.worldbank.org/en/region/mena/brief/coping-with-a-dual-shock-coronavirus-covid-19-and-oil-prices

https://www.worldbank.org/en/region/mena/brief/coping-with-a-dual-shock-coronavirus-covid-19-and-oil-prices


In April 2020, OPEC and other crude oil producing countries agreed to significant cuts in output, by 9.7 million barrels per day, in May and June 2020.46 The agreement came as crude oil prices continued to decrease due to falling worldwide consumption resulting from COVID-19 and a 13-month high in OPEC’s oil output in April 2020.47 These production cuts ultimately led to a steady increase in crude oil prices to the end of June 2020.

In July and August 2020, crude oil prices remained relatively stable, but prices fell in September 2020 due to an increase in the supply of crude oil from OPEC countries (which produced an additional 2 million barrels per day in September 2020) and concerns of another demand shock due to rising cases of COVID-19 globally.48

In November 2020, crude oil prices increased in response to news of the roll-out of COVID-19 vaccines and a decline in the US dollar.49 On 3 December 2020 OPEC and other crude oil producing countries agreed to increases in output by 0.5 million barrels per day from 1 January 2021.50

As noted in the previous section, crude oil prices increased throughout most of the March quarter 2021. In January 2021, Saudi Arabia announced it would voluntarily cut its own production by an additional 1 million barrels per day in February and March 2021 in response to concerns of seasonally low crude oil demand during the first quarter of 2021.51

In March 2021, the OPEC cartel was withholding around 8 million barrels per day including the voluntary cuts by Saudi Arabia. At the OPEC and non-OPEC Ministerial Meeting on 4 March 2021, the members agreed to extend most existing production cuts into April 2021.52 Demand for crude oil was also higher in the quarter, influenced by cold weather in northern Asia, Europe and the United States.53

6.3 Refiner margins increased but remained significantly below the 10-year average

The refiner margin is the difference between the price of refined petrol and the price of crude oil. In the March quarter 2021, the average refiner margin was USD 6.0 per barrel (around 4.9 cpl in Australian dollars), an increase of USD 1.1 per barrel (AUD 0.7 cpl) from the previous quarter (USD 4.9 per barrel or AUD 4.2 cpl).

The average refiner margin in the March quarter 2021 was significantly lower than the 10-year real average refiner margin (USD 11.7 per barrel, or AUD 8.9 cpl).

46 Reuters, Oil mixed as demand worries offset gains from output cut deal, 13 April 2020, at: https://www.reuters.com/article/us-global-oil/oil-futures-little-changed-despite-record-output-cut-by-opec-idUSKCN21U0WQ?feedType=mktg&feedName=ousivMolt&WT.mc_id=Partner-Google, accessed on 15 June 2021.

47 Reuters, OPEC April oil output surges to 13-month high before new cut deal, 1 May 2020, at: https://www.reuters.com/article/oil-opec-survey/opec-april-oil-output-surges-to-13-month-high-before-new-cut-deal-idUSL8N2CI8JG, accessed on 15 June 2021.

48 Reuters, OPEC September oil output rises for third month on Libya restart, Iran, 1 October 2020, at: https://www.reuters.com/article/uk-oil-opec-survey/opec-september-oil-output-rises-for-third-month-on-libya-restart-iran-idUKKBN26L2WY, accessed on 15 June 2021.

49 Reuters, Oil settles up, marking seventh straight weekly gain, 18 December 2020, at: https://www.reuters.com/article/us-global-oil/oil-settles-up-marking-seventh-straight-weekly-gain-idUSKBN28S09Q, accessed on 15 June 2021.

50 OPEC, 13th OPEC and non-OPEC Ministerial Meeting concludes, press release, 5 January 2021, at: https://www.opec.org/opec_web/en/press_room/6310.htm, accessed on 15 June 2021.

51 Reuters, Saudi voluntary oil cut to help with low demand in first quarter, OPEC chief says, 14 January 2021, at: https://www.reuters.com/article/us-global-oil-opec-idUSKBN29I20C, accessed on 15 June 2021.

52 Reuters, OPEC+ extends most oil output cuts into April, Saudi keeps voluntary curb, 4 March 2021, at: https://www.reuters.com/article/oil-opec-cuts-int-idUSKBN2AW0WA, accessed on 15 June 2021; and OPEC, 14th OPEC and non-OPEC Ministerial Meeting, press release, 4 March 2021, at: https://www.opec.org/opec_web/en/press_room/6375.htm, accessed on 15 June 2021.

53 International Energy Agency, Oil Market Report – March 2021, at: https://www.iea.org/reports/oil-market-report-march-2021, accessed on 15 June 2021.

https://www.reuters.com/article/us-global-oil/oil-futures-little-changed-despite-record-output-cut-by-opec-idUSKCN21U0WQ?feedType=mktg&feedName=ousivMolt&WT.mc_id=Partner-Google



https://www.reuters.com/article/oil-opec-survey/opec-april-oil-output-surges-to-13-month-high-before-new-cut-deal-idUSL8N2CI8JG

https://www.reuters.com/article/oil-opec-survey/opec-april-oil-output-surges-to-13-month-high-before-new-cut-deal-idUSL8N2CI8JG

https://www.reuters.com/article/uk-oil-opec-survey/opec-september-oil-output-rises-for-third-month-on-libya-restart-iran-idUKKBN26L2WY

https://www.reuters.com/article/uk-oil-opec-survey/opec-september-oil-output-rises-for-third-month-on-libya-restart-iran-idUKKBN26L2WY

https://www.reuters.com/article/us-global-oil/oil-settles-up-marking-seventh-straight-weekly-gain-idUSKBN28S09Q

https://www.reuters.com/article/us-global-oil/oil-settles-up-marking-seventh-straight-weekly-gain-idUSKBN28S09Q



https://www.reuters.com/article/us-global-oil-opec-idUSKBN29I20C

https://www.reuters.com/article/us-global-oil-opec-idUSKBN29I20C

https://www.reuters.com/article/oil-opec-cuts-int-idUSKBN2AW0WA

https://www.reuters.com/article/oil-opec-cuts-int-idUSKBN2AW0WA



https://www.iea.org/reports/oil-market-report-march-2021

https://www.iea.org/reports/oil-market-report-march-2021


6.4 Crude oil prices increased to around the long-term average

As with many commodities, crude oil prices fluctuate greatly. In the short term, market sentiment about economic conditions and geo-political events can drive rapid movements in crude oil prices. Over the medium to longer term, supply and demand factors drive prices, with periods of high or low prices lasting several years.

Extended periods of high crude oil prices provide an incentive for producers to invest in exploration and expansion. This leads to an increase in supply, which in turn puts downward pressure on prices. Conversely, when crude oil prices are low, producers tend not to invest, which puts upward pressure on prices, as supply is insufficient to meet the growth in demand.

Chart 6.2 shows that, over the 40 years to March 2021, WTI crude oil prices in real terms were on average around USD 61 per barrel. In the March quarter 2021, real WTI crude oil prices were on average around USD 58 per barrel, which was USD 15 per barrel higher than the December quarter 2020 (USD 43 per barrel) and USD 3 per barrel lower than the 40-year average.

Chart 6.2: Monthly average real WTI crude oil prices: April 1981 to March 2021

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1Source: ACCC calculations based on data used with permission from The Wall Street Journal, WSJ.com, Copyright

2015 Dow Jones & Company, Inc. All rights reserved, Reuters and U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index for all urban consumers, at: https://beta.bls.gov/dataViewer/view/timeseries/CUUR0000SA0, accessed on 15 June 2021.

Note: Real prices are shown in March 2021 dollars.

https://beta.bls.gov/dataViewer/view/timeseries/CUUR0000SA0

https://beta.bls.gov/dataViewer/view/timeseries/CUUR0000SA0


7. Diesel and LPG prices

7.1 Retail diesel prices increased in the quarterQuarterly average retail diesel prices in the 5 largest cities were 129.1 cpl in the March quarter 2021, an increase of 10.4 cpl from the December quarter 2020 (118.7 cpl).

The price of Singapore Gasoil with 10 parts per million sulphur content (Gasoil 10 ppm) is the appropriate international benchmark for the wholesale price of diesel. International demand for diesel is different from that for petrol, in part because of diesel’s off-road, industrial and electricity generation uses. However, both petrol and diesel are refined from crude oil and their prices broadly tend to follow similar movements over the long term.

Chart 7.1 shows that 7-day rolling average retail diesel prices in the 5 largest cities broadly tracked Gasoil 10 ppm prices over the 2 years to 31 March 2021.

Chart 7.1: Seven-day rolling average retail diesel prices in the 5 largest cities and Gasoil 10 ppm prices: 1 April 2019 to 31 March 2021

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–19

Jun

–19

Jul–

19

Au

g–1

9

Sep

–19

Oct

–19

No

v–19

Dec

–19

Jan

–20

Feb

–20

Mar

–20

Ap

r–20

May

–20

Jun

–20

Jul–

20

Au

g–2

0

Sep

–20

Oct

–20

No

v–20

Dec

–20

Jan

–21

Feb

–21

Mar

–21

Source: ACCC calculations based on data from FUELtrac, OPIS, Argus Media and RBA.

Note: Gasoil 10 ppm prices are lagged by 11 days as there is generally around a one- to 2-week lag between changes in international prices and changes in retail prices in the 5 largest cities.

Seven-day rolling average retail diesel prices increased over the March quarter 2021. Prices were 120.2 cpl at the beginning of the quarter and increased to 136.2 cpl at the end of the quarter. Seven-day rolling average Gasoil 10 ppm prices in Australian cents per litre were 46.9 cpl at the beginning of the quarter and increased to 57.8 cpl at the end of the quarter.

Quarterly average Gasoil 10 ppm prices in the March quarter 2021 in Australian cents per litre were 53.7 cpl, an increase of 11.6 cpl from the December quarter 2020 (42.1 cpl).

Unlike petrol prices, diesel prices in the 5 largest cities do not move in cycles. Diesel prices may not have price cycles because a large proportion of sales are to commercial users who purchase diesel on a contractual basis. According to the Australian Institute of Petroleum, only around 25% of the diesel used in Australia is sold through retail outlets, and much of that is sold to account customers with very little sold to private customers.54

54 Australian Institute of Petroleum, Facts about diesel prices & the Australian fuel market, at: https://www.aip.com.au/sites/default/files/download-files/2020-02/Facts%20about%20Diesel%20Prices%20and%20the%20Australian%20Fuel%20Market.pdf, accessed on 15 June 2021.

https://www.aip.com.au/sites/default/files/download-files/2020-02/Facts about Diesel Prices and the Australian Fuel Market.pdf




7.2 Taxes were the largest component of the average diesel price

Chart 7.2 shows the 3 broad components of the average retail diesel price in the 5 largest cities in the March quarter 2021.

Chart 7.2: Components of the average retail diesel price in the 5 largest cities in the March quarter 2021

Other costs and marginsTaxesGasoil 10ppm

129.1 cpl

DIESEL

53.7

42

16

54.3

21.1

cpl%

42

Source: ACCC calculations based on data from FUELtrac, Argus Media, RBA and ATO.

The chart shows that:

� the international price of Gasoil 10 ppm accounted for 42% of the average price of diesel, an increase of 7 percentage points from the December quarter 2020

� taxes also accounted for 42% of the average price, a decrease of 3 percentage points from the December quarter 2020

� other costs and margins accounted for 16% of the average price, a decrease of 4 percentage points from the December quarter 2020.

In the March quarter 2021 taxes were the largest component of the average retail price of diesel in the quarter.

7.3 Retail LPG prices increased in the quarterQuarterly average retail LPG prices in the 5 largest cities in the March quarter 2021 were 85.6 cpl, an increase of 8.9 cpl from the December quarter 2020 (76.7 cpl).55

The Saudi Aramco Contract Prices for propane and butane (Saudi CP) are the appropriate international benchmarks for wholesale LPG prices. These prices only change once a month, at the start of each month. International LPG prices loosely move in line with international refined petrol and diesel prices.

Chart 7.3 shows that movements in retail LPG prices over the 2 years to 31 March 2021 were less reponsive to movements, both up and down, in international benchmark prices.

55 References to LPG refer to automotive liquefied petroleum gas.


Chart 7.3: Seven-day rolling average retail LPG prices in the 5 largest cities and monthly Saudi CP benchmarks: 1 April 2019 to 31 March 2021

cpl

cpl

Retail prices (LHS) Saudi CP (RHS)

5

15

25

35

45

55

65

75

35

45

55

65

75

85

95

105A

pr–

19

May

–19

Jun

–19

Jul–

19

Au

g–1

9

Sep

–19

Oct

–19

No

v–19

Dec

–19

Jan

–20

Feb

–20

Mar

–20

Ap

r–20

May

–20

Jun

–20

Jul–

20

Au

g–2

0

Sep

–20

Oct

–20

No

v–20

Dec

–20

Jan

–21

Feb

–21

Mar

–21

Source: ACCC calculations based on data from FUELtrac, Reuters and RBA.

Seven-day rolling average retail LPG prices increased over the March quarter 2021. Prices were 77.0 cpl at the beginning of the quarter and increased to 91.1 cpl at the end of the quarter. The Saudi CP benchmarks in Australian cents per litre also increased over the quarter. The benchmark price was 39.1 cpl in January 2021 and 42.9 cpl in March 2021.

Quarterly average Saudi CP benchmark prices in the March quarter 2021 were 41.3 cpl, an increase of 9.3 cpl from the December quarter 2020 (32.0 cpl).

As the Saudi CP benchmarks only change at the start of each month, the relationship between movements in the international benchmark prices and retail prices for LPG is different from petrol and diesel. International LPG prices are influenced by non-transport factors, such as demand for heating, particularly in the Northern Hemisphere.

Like diesel prices, retail LPG prices tend to be less volatile than petrol prices and do not move in cycles. LPG usage in Australia is significantly less than petrol and diesel usage, and there are fewer retailers of LPG, particularly outside Victoria (where around half of Australia’s LPG is sold).


7.4 Other costs and margins were a relatively large component of the average LPG price

Chart 7.4 shows the 3 broad components of the average retail LPG price in the 5 largest cities in the March quarter 2021.

Chart 7.4: Components of the average retail LPG price in the 5 largest cities in the March quarter 2021

Other costs and marginsTaxesSaudi CP

85.6 cpl

LPG

41.3

25

27

21.6

22.7

cpl%

48

Source: ACCC calculations based on data from FUELtrac, Reuters, RBA and ATO.

The chart shows that:

� the Saudi CP international benchmarks accounted for 48% of the average price of LPG, an increase of 6 percentage points from the December quarter 2020

� taxes accounted for 25% of the average price, a decrease of 2 percentage points from the December quarter 2020

� other costs and margins accounted for 27% of the average price, a decrease of 4 percentage points from the December quarter 2020.

Other costs and margins make up a relatively large proportion of the retail price for LPG compared with those for petrol and diesel because of the higher transportation and storage costs for LPG, and the lower rate of excise.56

56 On February 2021, excise on petrol and diesel increased to 42.7 cpl and excise on automotive LPG increased to 13.9 cpl.


Appendix A: Key messages from the ACCC report ‘Independent chains generally have the lowest prices – report on petrol prices by major retailer in 2019 and 2020’

The price of petrol is important to many motoristsThe price of petrol is an important factor in a motorist’s decision about where to buy petrol.57 In a survey of fuel consumer attitudes in 2019, commissioned by the Australasian Convenience and Petroleum Marketers Association, 56% of consumers indicated that price had the biggest influence on their decision about where to buy fuel.58

There are other reasons why motorists may choose to go to one retail site instead of another. These include factors such as location, type of fuel sold, the ability to redeem discount vouchers or use a loyalty card, retail brand, convenience store, food and beverage offering (such as coffee) and the cleanliness of the retail site (including the bathrooms).

However, motorists that are primarily influenced by price in choosing where to buy petrol can find information about the petrol prices of the various major retailers helpful.59

The ACCC analysed annual average retail petrol prices in calendar years 2019 and 2020 to identify the highest and lowest priced major retailers of petrol (on average) in each capital city in Australia. Regular unleaded petrol (RULP) prices were analysed in all cities except Sydney, where E10 (i.e. RULP with up to 10% ethanol) prices were analysed.

Major retailers include: BP and Ampol (Caltex) company operated sites60, Coles Express, and independent chains that set their own retail prices (such as Woolworths/Euro Garages (EG) Group, 7-Eleven, United, Puma Energy, Metro Petroleum and Speedway). A ‘small independents’ category represents those retailers with only a few sites in a city or single retail site operators.

The brand of the retail site will not always reflect the owner or fuel price setter. For example, some independent chains use a BP or Caltex brand but set their own prices, as do some single site retail operators.

Independent chains generally had the lowest prices in 2020The following charts show the difference between each major retailer’s annual average petrol price and the market annual average petrol price in each capital city in 2020. They also show the proportion of retail sites in the city for each major retailer as at 30 June 2019, which provides an indication of the significance of each major retailer’s prices in the market.61

57 In this report, references to petrol are to regular unleaded petrol (RULP) unless otherwise specified.

58 Australasian Convenience and Petroleum Marketers Association, 2019 Monitor of Fuel Consumer Attitudes, p. 13, at: https://acapmag.com.au/wp-content/uploads/2019/11/ACAPMA-2019-National-Monitor-of-Fuel-Consumer-Attitudes-V1.0.pdf, accessed on 28 May 2021.

59 A major retailer in the 5 largest capital cities (i.e. Sydney, Melbourne, Brisbane, Adelaide and Perth) is one that determines the retail price of petrol at 7 or more retail sites in that city. As there are a smaller number of retail sites in the smaller capitals (i.e. Canberra, Hobart and Darwin), a major retailer may have fewer than 7 retail sites.

60 BP- and Caltex-branded retail sites at which BP and Ampol set the price (i.e. company-owned and company-operated retail sites and commission agent retail sites) are referred to as COCO sites.

61 This proportion is indicative only. Retail prices are not available for all retail sites in each city and not all retail sites sell all grades of petrol (for example, some retail sites in Sydney do not sell E10).

https://acapmag.com.au/wp-content/uploads/2019/11/ACAPMA-2019-National-Monitor-of-Fuel-Consumer-Attitudes-V1.0.pdf

https://acapmag.com.au/wp-content/uploads/2019/11/ACAPMA-2019-National-Monitor-of-Fuel-Consumer-Attitudes-V1.0.pdf


The charts indicate that in 2020:

� An independent chain was the lowest priced major retailer in all capital cities (United in Brisbane, Adelaide and Hobart, Metro Petroleum in Melbourne and Canberra, Speedway in Sydney, Vibe in Perth and FuelXpress in Darwin).

� Refiner-marketers were the highest priced retailer in most capital cities (Coles Express in Brisbane and Canberra, BP COCO in Sydney and Melbourne and Caltex COCO in Adelaide).62

� In the other capital cities, the highest priced retailers were BP Sanzone (a BP-branded independent chain, in Perth), Puma Energy (in Darwin) and small independents (in Hobart).

Low priced retailers, including many of the independent chains, compete vigorously on price and provide an important influence on the level of price competition across the cities.

There was significant variation between the highest and lowest average priced major retailer in most cities. The average range across the 5 largest capital cities was 11.4 cents per litre (cpl). The largest range was 17.1 cpl (in Sydney) and the smallest was 6.7 cpl (in Brisbane).

The range of prices between the major retailers dispel the myth held by some consumers that all petrol prices are the same.

Sydney

Difference between each major retailer’s annual average petrol price and the market annual average petrol price in 2020

-12 -10 -8 -6 -4 -2 0 2 4 6 8 10 12

cpl

Market average

BP COCO (7%)

Coles Express (12%)

Caltex COCO (13%)

7-Eleven (16%)

Woolworths (8%)

BP Jasbe (2%)

Small independents (20%)

United (2%)

Budget (4%)

Westside (1%)

Metro Petroleum (10%)

Speedway (4%)

Source: ACCC calculations based on Informed Sources data and information provided by some major retailers.

Notes: References to petrol in Sydney are to E10.

The numbers in brackets are the proportion of retail sites in Sydney for each major retailer as at 30 June 2019.

The proportions of retail sites shown in the chart do not total 100% due to rounding.

BP Jasbe is a BP-branded independent chain.

The savings available to motorists that shop around can add up. If a motorist in Sydney who bought petrol at the highest priced retailer (i.e. BP COCO) had instead bought it at the lowest priced retailer (i.e. Speedway), they could have saved themselves on average 17.1 cpl each time they filled up, or $445 in 2020.63

62 Refiner-marketers are those retailers that operate in the refining sector as well as the retailing sector of the petroleum industry. From March 2019 Coles Express has been essentially a refiner-marketer as Viva Energy refines the fuel which is sold at Coles Express sites, and also determines the retail price.

63 Based on a motorist purchasing 50 litres of petrol once a week throughout the year. The ability of a motorist to make these savings would have been influenced by the location of the highest and lowest priced retailers, and the willingness of motorists to travel to obtain cheaper prices.


The chart shows that there were 6 independent chains in Sydney with average prices below the market average price (representing around a quarter of total retail sites).

Melbourne


-12 -10 -8 -6 -4 -2 0 2 4 6 8 10 12

cpl

Market average

BP Jasbe (2%)

Woolworths (11%)

7-Eleven (17%)


BP AA (5%)

United (11%)

Puma Energy (1%)

Liberty (2%)


Coles Express (18%)

Caltex COCO (11%)

BP COCO (4%)


Notes: The numbers in brackets are the proportion of retail sites in Melbourne for each major retailer as at 30 June 2019.

Prices were not available for Shell retail sites in Melbourne. Therefore, the proportions of retail sites shown in the chart do not total 100%.

BP AA and BP Jasbe are BP-branded independent chains.

If a motorist in Melbourne who bought petrol at the highest priced retailer (i.e. BP COCO) had instead bought it the lowest priced retailer (i.e. Metro Petroleum), they could have saved themselves on average 12.2 cpl each time they filled up, or $317 in 2020.

The chart shows that there were 5 independent chains in Melbourne with average prices below the market average price (representing around a fifth of total retail sites).


Brisbane


-12 -10 -8 -6 -4 -2 0 2 4 6 8 10 12

cpl

Market average

Caltex COCO (15%)

BP COCO (9%)

Freedom Fuels (6%)

Woolworths (10%)

7-Eleven (20%)

BP McPhee (2%)


Puma Energy (8%)

United (3%)

Coles Express (14%)


Notes: The numbers in brackets are the proportion of retail sites in Brisbane for each major retailer as at 30 June 2019.

The proportions of retail sites shown in the chart do not total 100% due to rounding.

BP McPhee is a BP-branded independent chain.

If a motorist in Brisbane who bought petrol at the highest priced retailer (i.e. Coles Express) had instead bought it at the lowest priced retailer (i.e. United), they could have saved themselves on average 6.7 cpl each time they filled up, or $174 in 2020.

The chart shows that there were 5 independent chains in Brisbane with average prices below the market average price (representing around two-fifths of total retail sites).


Adelaide


-12 -10 -8 -6 -4 -2 0 2 4 6 8 10 12

cpl

Market average

Caltex COCO (15%)

On the Run (37%)

Coles Express (11%)

Woolworths (8%)


X Convenience (6%)

Liberty (7%)

United (3%)


Notes: The numbers in brackets are the proportion of retail sites in Adelaide for each major retailer as at 30 June 2019.

The small independents category includes the single BP COCO retail site in Adelaide.

If a motorist in Adelaide who bought petrol at the highest priced retailer (i.e. Caltex COCO) had instead bought it at the lowest priced retailer (i.e. United), they could have saved themselves on average 12.7 cpl each time they filled up, or $330 in 2020.

The chart shows that there were 3 independent chains in Adelaide with average prices below the market average price (representing around a sixth of total retail sites).


Perth


-12 -10 -8 -6 -4 -2 0 2 4 6 8 10 12

cpl

Market average

BP COCO (14%)

Coles Express (14%)

Caltex COCO (19%)

BP Epic Group (2%)

Woolworths (7%)

7-Eleven (8%)

Puma Energy (13%)


Better Choice (2%)

United (5%)

Vibe (4%)

BP Sanzone (2%)


Notes: The numbers in brackets are the proportion of retail sites in Perth for each major retailer as at 30 June 2019.

BP Sanzone and BP Epic Group are BP-branded independent chains.

The average price for 7-Eleven was equal to the market average price.

If a motorist in Perth who bought petrol at the highest priced retailer (i.e. BP Sanzone) had instead bought it at the lowest priced retailer (i.e. Vibe), they could have saved themselves on average 8.3 cpl each time they filled up, or $216 in 2020.

The chart shows that there were 4 independent chains in Perth with average prices below the market average price (representing around a quarter of total retail sites).


Canberra


-12 -10 -8 -6 -4 -2 0 2 4 6 8 10 12

cpl

Market average

Caltex COCO (19%)

Woolworths (17%)

7-Eleven (16%)


United (3%)


Coles Express (26%)


Notes: The numbers in brackets are the proportion of retail sites in Canberra for each major retailer as at 30 June 2019

Prices were not available for BP-branded retail sites in Canberra, as they generally sell E10 rather than RULP. Prices were also not available for the small independents category. Therefore, the proportions of retail sites shown in the chart do not total 100%.

If a motorist in Canberra who bought petrol at the highest priced retailer (i.e. Coles Express) had instead bought it at the lowest priced retailer (i.e. Metro Petroleum), they could have saved themselves on average 7.7 cpl each time they filled up, or $200 in 2020.

The chart shows that there were 3 independent chains in Canberra with average prices below the market average price (representing around a fifth of total retail sites).


Hobart


-12 -10 -8 -6 -4 -2 0 2 4 6 8 10 12

cpl

Market average


Caltex Bennett's Petroleum (10%)

Coles Express (11%)

BP COCO (11%)

Caltex COCO (13%)

Woolworths (7%)

United (15%)


Notes: The numbers in brackets are the proportion of retail sites in Hobart for each major retailer as at 30 June 2019.

Caltex Bennett’s Petroleum is a Caltex-branded independent chain.

The average prices of Coles Express and BP COCO were equal to the market average.

If a motorist in Hobart who bought petrol at the highest priced retailer (i.e. a small independent retailer) had instead bought it at the lowest priced retailer (i.e. United), they could have saved themselves on average 3.0 cpl each time they filled up, or $78 in 2020.

The chart shows that there were 2 independent chains in Hobart with average prices below the market average price (representing around a fifth of total retail sites).


Darwin


-12 -10 -8 -6 -4 -2 0 2 4 6 8 10 12

cpl

Market average

Puma Energy (30%)

Coles Express (12%)

United (19%)

Caltex COCO (7%)

BP COCO (2%)

Woolworths (12%)

FuelXpress (2%)


Notes: The numbers in brackets are the proportion of retail sites in Darwin for each major retailer as at 30 June 2019.

Prices were not available for the small independents category. Therefore, the proportions of retail sites shown in the chart do not total 100%.

If a motorist in Darwin who bought petrol at the highest priced retailer (i.e. Puma Energy) had instead bought it at the lowest priced retailer (i.e. FuelXpress), they could have saved themselves on average 2.1 cpl each time they filled up, or $55 in 2020.

The chart shows that there were 3 independent chains in Darwin with average prices below the market average price (representing around a third of total retail sites).

Based on typical fuel use, motorists could have saved around $485 million in 2020 simply by buying petrol at low-priced retailersMotorists can make savings on petrol if they shop around and purchase it from lower priced retailers. Even if motorists in the 5 largest capital cities made a switch from buying petrol from a high-priced retailer (i.e. those with an average price above the market average price) to a low-priced retailer (i.e. those with an average price below the market average price), in aggregate they could have saved substantial amounts.

ACCC calculations indicate that savings from motorists across the 5 largest capital cities switching from high-priced retailers to low-priced retailers could have totalled around $485 million in 2020. The total potential savings in 2020 could have been around $216 million in Sydney, around $147 million in Melbourne, around $46 million in both Adelaide and Perth and around $31 million in Brisbane.64

64 These estimates are based on the following calculations and assumptions. The ACCC calculated the range between the average price of high-priced retailers and low-priced retailers in the 5 largest cities and estimated the number of unleaded petrol vehicles in each city using Australian Bureau of Statistics census and vehicle data. The ACCC assumed that: 50% of motorists purchased petrol at high-priced retailers; similar savings were available for all petrol grades; motorists purchased 50 litres of petrol each time they filled up; that one-third of motorists filled up once a week, one-third filled up once every 2 weeks and the remaining third filled up once every month.


These calculations do not take account of the savings available to motorists who usually bought petrol from a low-priced retailer and switched to buy it from an even lower priced retailer. For example, motorists in Sydney that bought from BP Jasbe (which was 0.2 cpl lower than the market average price) who instead switched to Speedway (which was 10.7 cpl lower than the market average price).

These are illustrative savings over a full year based on typical fuel use. In 2020, demand for petrol decreased significantly in some jurisdictions due to restrictions on travel associated with the COVID-19 situation. Sales of RULP in Australia in 2020 were 14% lower than sales in 2019. While less petrol was purchased in 2020, these calculations indicate that motorists who shop around can save money on their petrol purchases.

The ACCC has also noted, in previous analysis, that motorists who time their purchases to avoid the peaks of the price cycles in the 5 largest capital cities can make substantial savings on petrol.65

Information to help motorists save money is widely availableMotorists can use information about the relative average prices of the major retailers, in conjunction with other publicly available fuel price information, to help them make informed purchasing decisions. This includes real-time price data available through fuel price transparency schemes operating in New South Wales, Western Australia, Queensland, the Northern Territory, South Australia and Tasmania.

A variety of fuel price websites and apps provide information to motorists about petrol prices, including:

� government websites and apps in Western Australia, New South Wales, Tasmania and the Northern Territory

� motoring organisations’ fuel price websites and apps (such as the NRMA, RACQ, RAA SA and RACT schemes)

� apps operated by fuel retailers (such as 7-Eleven and EG Group)

� commercial websites and apps (such as MotorMouth, Petrol Spy and EzySt).

Some fuel price websites and apps are more comprehensive and timely than others. The government schemes are the most comprehensive and up-to-date, whereas the commercial services may not include all of the lowest priced retail sites in some states. However, in jurisdictions where commercial services obtain their data via the government schemes, they can be as comprehensive and timely as the government websites and apps.

The use of fuel price websites and apps has increased in recent years. The ACAPMA 2019 consumer survey found that 19% of consumers in 2019 indicated that they use fuel price apps to find the best price (up from 8% in 2017) and 9% used fuel price websites.66

65 ACCC, Petrol price cycles in Australia, 6 December 2018, at: https://www.accc.gov.au/publications/petrol-industry-reports/petrol-price-cycles-in-australia.

66 ACAPMA, 2019 Monitor of Fuel Consumer Attitudes, p. 20.




The ACCC has championed greater fuel price transparency for consumersOver the past 7 years, the ACCC has contributed significantly to the introduction of fuel price transparency schemes in Australia through its court action and policy advocacy.

In August 2014, the ACCC took court action against Informed Sources and several petrol retailers that subscribed to its Oil Price Watch service.67 Informed Sources operates a petrol price information exchange service which allows for subscribing petrol retailers to exchange prices on a near real-time basis. The ACCC was concerned that this arrangement, which allowed for the highly frequent and private exchange of price information between petrol companies, had the effect or likely effect of substantially lessening competition for the retail sale of petrol. In December 2015, the ACCC resolved these proceedings with undertakings from Informed Sources and the petrol retailers.68 The undertakings from Informed Sources stated that it would make the same fuel price information available to consumers as it does to its subscribers and provide data to third party app providers on reasonable commercial terms. In May 2016, MotorMouth (a subsidiary of Informed Sources) updated its app to provide motorists with access to near real-time petrol prices for the first time.

Around the same time as the resolution with Informed Sources and the petrol retailers, the New South Wales Government announced the introduction of a fuel price transparency scheme. In August 2016, FuelCheck – an online tool providing consumers with real-time fuel prices covering almost every retail site across New South Wales – commenced.

The improvements to the MotorMouth app and the introduction of FuelCheck in New South Wales improved the functioning of retail petrol markets by enabling motorists to more easily compare prices across retail sites and providing greater public scrutiny of the behaviour of petrol retailers.

Through its regional market studies – beginning with the report on Darwin in November 2015 – the ACCC has also been championing fuel price transparency as a way to introduce more competition into petrol markets.69 In response to the ACCC’s Darwin report, the Northern Territory government introduced the MyFuel NT fuel price transparency scheme in November 2017. The ACCC’s Cairns regional market study and short report on Brisbane in 2017 both promoted a fuel price transparency scheme for Queensland. In December 2018, Queensland introduced a 2 year trial scheme, which was made permanent in December 2020.

The ACCC also advocated for fuel price transparency schemes in other jurisdictions, such as Tasmania and South Australia (which were introduced in 2020 and 2021 respectively).

67 ACCC, ACCC takes action against Informed Sources and petrol retailers for price information sharing, media release, 20 August 2014, at: https://www.accc.gov.au/media-release/accc-takes-action-against-informed-sources-and-petrol-retailers-for-price-information-sharing.

68 ACCC, Petrol price information sharing proceedings resolved, media release, 23 December 2015, at: https://www.accc.gov.au/media-release/petrol-price-information-sharing-proceedings-resolved.

69 The Chair of the ACCC outlined the ACCC’s position on fuel price transparency in a speech to the Asia Pacific Fuel Industry Forum on 13 September 2017. See: Fuel price transparency and retail industry competition, at: https://www.accc.gov.au/speech/fuel-price-transparency-and-retail-industry-competition.

https://www.accc.gov.au/media-release/accc-takes-action-against-informed-sources-and-petrol-retailers-for-price-information-sharing

https://www.accc.gov.au/media-release/accc-takes-action-against-informed-sources-and-petrol-retailers-for-price-information-sharing

https://www.accc.gov.au/media-release/petrol-price-information-sharing-proceedings-resolved

https://www.accc.gov.au/media-release/petrol-price-information-sharing-proceedings-resolved

https://www.accc.gov.au/speech/fuel-price-transparency-and-retail-industry-competition

https://www.accc.gov.au/speech/fuel-price-transparency-and-retail-industry-competition


Over the past 4 years some independent chains were consistently the lowest priced retailers across the cities Between 2017 and 2020, the lowest priced major retailer in each of the capital cities was one of the larger independent chains. Furthermore, in many cities the same independent chain was consistently the lowest. For instance:

� in all 4 years, Speedway was the lowest priced retailer in Sydney and United was the lowest in Brisbane

� in the 3 years between 2018 and 2020, United was lowest priced retailer in Hobart and FuelXpress was lowest in Darwin

� in 3 of the 4 years, United was the lowest priced retailer in Melbourne and Vibe was the lowest priced retailer in Perth.

In comparison, the highest priced retailer in each of the capital cities changed over the 4 years:

� In 2017 and 2018, Coles Express was almost exclusively the highest priced retailer in the capital cities. By 2020, it was the highest priced retailer in only 2 cities: Brisbane and Canberra. 70

� In 2020, 6 different major retailers were the highest priced retailer. Apart from Coles Express, these were BP COCO, Caltex COCO, BP Sanzone, Puma Energy, and small independents.

The range between the highest priced and lowest priced major retailer has generally been increasing over timeBetween 2017 and 2020, the range between the highest and lowest priced retailer trended upward in Sydney, Melbourne and Adelaide. In Perth, the range increased in 2018 and remained broadly stable in subsequent years, and in Brisbane the range remained stable apart from an increase in 2018.

The average range between the highest and lowest priced retailer across the 5 largest capital cities increased from 6.3 cpl in 2017 to 8.4 cpl in 2018. It remained the same in 2019 and increased to 11.4 cpl in 2020.

A possible influence on the increase in the range since 2017 is that retail petrol prices were more volatile in subsequent years, reflecting larger movements in the international price of refined petrol. For instance:

� in 2017 daily average petrol prices across the 5 largest capital cities varied from a low of 114.7 cpl to a high of 146.4 cpl (i.e. a variation of 31.7 cpl)

� in 2018 these average prices varied by 46.8 cpl, and in 2019 they varied by 49.8 cpl

� in 2020 average prices varied significantly more, by 71.1 cpl.

The decrease in petrol demand in 2020 associated with COVID-19 travel restrictions may also have been an influence.

The greater range of prices in 2020 meant that a motorist’s decision to switch from a high priced retailer to a low priced retailer would mean greater savings in 2020 than in previous years.

70 Coles Express was consistently the highest priced retailer in Brisbane between 2017 and 2020 and in Canberra between 2018 and 2020.


Prices at Coles Express and Woolworths retail sites were generally lower following the changes in price setter in 2019The retail price setter at both Coles Express and Woolworths fuel retail sites changed in the first half of 2019. From 1 March 2019, Viva Energy began setting the price of fuel at Coles Express retail sites, with Coles Express becoming a commission agent. On 1 April 2019, EG Group completed its purchase of Woolworths’ petrol business and commenced setting fuel prices at 540 previously Woolworths-owned retail sites.

The ACCC examined how average retail petrol prices at Coles Express and Woolworths retail sites differed from market average prices in the 8 capital cities during:

� calendar year 2018, when Coles and Woolworths were setting petrol prices at their respective sites

� the 12-month period 1 April 2019 to 30 March 2020, which is after the change in price setter, when Viva Energy and EG Group were setting petrol prices.

Coles ExpressThe following chart shows the difference between the average petrol price at Coles Express retail sites and the market average petrol price in the 8 capital cities for the 12-month periods prior to (i.e. calendar year 2018) and after (i.e. 1 April 2019 to 30 March 2020), the change in price setter from Coles to Viva Energy.

Differences between the average petrol price at Coles Express retail sites and the market average petrol price in the capital cities prior to, and after, the change in price setter in 2019

-8 -6 -4 -2 2 4 6 8

cpl

Market average

After the change (April 2019 to March 2020)Prior to the change (calendar year 2018)

Sydney

Melbourne

Brisbane

Adelaide

Perth

Canberra

Hobart

Darwin

Source: ACCC calculations based on Informed Sources data.

Notes: E10 prices are used in Sydney. RULP prices are used in all other cities.

Hobart prices for 2018 are for the 6-month period April to September 2018.

The chart shows that average prices at Coles Express retail sites were lower in all capital cities when Viva Energy was setting petrol prices.71 However, average prices at Coles Express retail sites remained higher than market average prices in all cities.

71 Lower relative retail prices at Coles Express sites had a positive effect on sales volumes. In its 2019 annual report, Viva Energy stated: ‘As a result of a more competitive retail fuel pricing strategy, the Group returned fuel volumes through the Alliance network to growth in 2H2019 after an extended period of decline.’ See Viva Energy Australia, Annual Report 2019, released on 18 March 2020, p. 13, at: https://investor.vivaenergy.com.au/investor-centre/?page=asx-announcements, accessed on 28 May 2021.

https://investor.vivaenergy.com.au/investor-centre/?page=asx-announcements


Across the 8 capital cities, the average price at Coles Express retail sites was on average 1.4 cpl lower when Viva Energy set the price of petrol, compared with when Coles Express set the price. When Coles Express set the price of petrol, the average price at Coles Express retail sites was on average 3.0 cpl higher than the market average price. When Viva Energy set the price of petrol, the average price at Coles Express retail sites was on average 1.6 cpl higher than the market average price.

Across the 5 largest capital cities, the difference was larger. The average price at Coles Express retail sites was on average 1.7 cpl lower when Viva Energy set the price of petrol, compared with when Coles Express set the price.

WoolworthsThe following chart shows the difference between the average petrol price at Woolworths retail sites and the market average petrol price in the 8 capital cities for the 12-month periods prior to (i.e. calendar year 2018), and after (i.e. 1 April 2019 to 30 March 2020), the change in price setter from Woolworths to EG Group.

Differences between the average petrol price at Woolworths retail sites and the market average petrol price in the capital cities prior to, and after, the change in price setter in 2019

-8 -6 -4 -2 2 4 6 8

cpl

Market average

After the change (April 2019 to March 2020)Prior to the change (calendar year 2018)

Sydney

Melbourne

Brisbane

Adelaide

Perth

Canberra

Hobart

Darwin

Source: ACCC calculations based on Informed Sources data.

Notes: E10 prices are used in Sydney. RULP prices are used in all other cities.

Hobart prices in 2018 are for the 6-month period April to September 2018.

The chart shows that average prices at Woolworths retail sites were lower in all capital cities except Canberra, when EG Group was setting petrol prices. Average prices at Woolworths retail sites were lower than market average prices in all cities except Sydney.

Across the 8 capital cities, the average price at Woolworths retail sites was on average 0.6 cpl lower when EG set the price of petrol, compared with when Woolworths set the price. When Woolworths set the price of petrol, the average price at Woolworths retail sites was on average 0.5 cpl lower than the market average price. When EG Group set the price of petrol, the average price at Woolworths retail sites was on average 1.1 cpl lower than the market average price.

Across the 5 largest capital cities, the difference was larger. The average price at Woolworths retail sites was on average 0.8 cpl lower when EG Group set the price of petrol, compared with when Woolworths set the price.


Petrol retailers are not the sameAt 30 June 2020, there were around 7,700 retail fuel sites in Australia, which operate under a range of business models.72 The variety of business models and ownership structures mean that there are different pricing strategies and offerings among retail sites, as well as different capital structures and cost bases.

For example, some retailers may consider that they have a ‘premium brand’, an attractive retail site, a good location and/or a superior convenience store, and set their retail prices higher to reflect these features. Other retailers may consider that they need to set prices below those of many of their local competitors to attract customers to their retail site. Some may have competitive prices to attract consumers into their convenience store where margins are often higher than on sales of fuel.

Some retailers may offer discounts to qualifying customers. Examples of these include shopper docket discount arrangements of the supermarket chains, discount arrangements between some major retailers and state motoring organisations, and discounts associated with fuel cards. These offers may also influence a retailer’s pricing strategy.

When considering the average prices of the major retailers, these differences need to be borne in mind. Consumers should remember, however, that there are minimum standards for RULP that all retailers must adhere to, and RULP sold by an independent retailer is typically supplied by the same refinery or import terminal as that sold by a so called ‘premium brand’.

72 From the Informed Sources NetWatch database.


Appendix B: Petrol price data for monitored locationsThe ACCC monitors fuel prices in all capital cities and over 190 regional locations across Australia. Table B1 shows quarterly average retail petrol prices in the December quarter 2020 and the March quarter 2021, and the change between the 2 quarters, in these locations.73 It also shows the differential between the average price in each location and the average price in the 5 largest cities in aggregate, and the location’s capital city in the March quarter 2021 and in the year to 31 March 2021.74

Table B1: Quarterly average petrol prices in the December quarter 2020 and the March quarter 2021, and differentials in the March quarter 2021 and year to March 2021 – cpl

Location Dec 2020 Mar 2021

Change

Dec 2020 to Mar 2021

Differential Mar 2021

Differential Year to Mar 2021

5 largest cities

Capital city

5 largest cities

Capital city

Sydney 122.4 132.8 10.4

Melbourne 126.3 136.2 9.9

Brisbane 126.0 135.6 9.6

Adelaide 114.1 132.1 18.0

Perth 117.8 130.3 12.5

5 largest cities 121.4 133.4 12.0

Hobart 124.2 133.7 9.5 0.3 5.7

Canberra 122.0 131.9 9.9 -1.5 1.5

Darwin 116.4 126.4 10.0 -7.0 -2.2

New South Wales

Albury 115.5 126.8 11.3 -6.6 -7.4 -2.6 -3.2

Armidale 117.3 128.9 11.6 -4.5 -5.3 -0.7 -1.3

Ballina 122.7 134.1 11.4 0.7 -0.1 4.8 4.2

Batemans Bay 121.8 133.1 11.3 -0.3 -1.1 2.5 1.9

Bathurst 118.1 125.1 7.0 -8.3 -9.1 -3.4 -4.0

Bega 129.9 133.2 3.3 -0.2 -1.0 9.7 9.1

Broken Hill 125.1 135.3 10.2 1.9 1.1 6.6 6.0

Bulahdelah 124.8 129.4 4.6 -4.0 -4.8 5.6 5.0

Casino 119.9 128.3 8.4 -5.1 -5.9 -0.5 -1.1

73 The source for all prices in this appendix is ACCC calculations based on data from FUELtrac. For a price to be included in the table there had to be a price observation on at least 75% of days in the quarter/year. Ten

locations – Buronga, Gundagai, Oberon, Blackall, Cunnamulla, Mt Isa, Normanton, Weipa, Coober Pedy and Orbost – did not have sufficient data for December 2020 or March 2021. E10 prices instead of RULP prices are reported in Sydney, Coonabarabran, Cowra, Gilgandra, Gunnedah, Lithgow, Ulladulla, Wellington, West Wyalong and Yass.

74 In most New South Wales locations the table reports a RULP price. To calculate the differential with the price in Sydney, the differential between this price and the Sydney RULP price is calculated. In the March quarter 2021 the average price of RULP in Sydney was 134.2 cpl and in the year to March 2021 it was 122.0 cpl. Where the table reports an E10 price, the differential between this price and the Sydney E10 price is calculated.

The average price in the year to March 2021 across the 5 largest cities was 121.4 cpl. Average prices In each capital city were: Sydney (E10) – 120.5 cpl, Melbourne – 124.6 cpl, Brisbane – 124.6 cpl, Adelaide – 119.3 cpl, Perth – 118.3 cpl, Darwin – 119.2 cpl, Hobart – 127.1 cpl, and Canberra – 122.9 cpl.



Change




5 largest cities

Capital city

5 largest cities

Capital city

Central Coast 125.4 137.2 11.8 3.8 3.0 2.8 2.2

Coffs Harbour 119.3 130.0 10.7 -3.4 -4.2 0.2 -0.4

Cooma 122.4 134.8 12.4 1.4 0.6 3.8 3.2

Coonabarabran 119.5 130.4 10.9 -3.0 -2.4 -0.1 0.8

Cootamundra 120.4 128.9 8.5 -4.5 -5.3 2.9 2.3

Cowra 121.9 133.1 11.2 -0.3 0.3 2.7 3.6

Deniliquin n/a 130.1 n/a -3.3 -4.1 4.2 3.6

Dubbo 117.0 128.8 11.8 -4.6 -5.4 -2.2 -2.8

Forbes 124.9 131.7 6.8 -1.7 -2.5 6.5 5.9

Forster 119.0 128.5 9.5 -4.9 -5.7 0.2 -0.4

Gilgandra 119.1 127.5 8.4 -5.9 -5.3 -1.8 -0.9

Glen Innes 123.8 128.1 4.3 -5.3 -6.1 3.9 3.3

Goulburn 117.2 126.6 9.4 -6.8 -7.6 -3.8 -4.4

Grafton 118.8 133.3 14.5 -0.1 -0.9 -0.5 -1.1

Griffith 114.9 125.6 10.7 -7.8 -8.6 -3.5 -4.1

Gunnedah 112.0 121.2 9.2 -12.2 -11.6 -6.4 -5.5

Hay 117.1 126.9 9.8 -6.5 -7.3 -0.4 -1.0

Inverell 115.9 127.6 11.7 -5.8 -6.6 -1.5 -2.1

Jerilderie 119.9 127.1 7.2 -6.3 -7.1 1.3 0.7

Kempsey 113.9 125.2 11.3 -8.2 -9.0 -4.6 -5.2

Leeton 120.0 128.1 8.1 -5.3 -6.1 0.6 0.0

Lismore 116.1 128.4 12.3 -5.0 -5.8 -1.0 -1.6

Lithgow 108.7 122.6 13.9 -10.8 -10.2 -9.5 -8.6

Merimbula 117.9 129.7 11.8 -3.7 -4.5 -1.1 -1.7

Mittagong 117.2 129.9 12.7 -3.5 -4.3 -0.2 -0.8

Moama 116.4 129.7 13.3 -3.7 -4.5 -3.5 -4.1

Moree 117.3 128.8 11.5 -4.6 -5.4 -1.9 -2.5

Moruya 113.9 124.3 10.4 -9.1 -9.9 -8.3 -8.9

Moss Vale 121.1 132.3 11.2 -1.1 -1.9 1.5 0.9

Mudgee 120.5 132.6 12.1 -0.8 -1.6 0.6 0.0

Murwillumbah 139.9 140.3 0.4 6.9 6.1 11.6 11.0

Muswellbrook 106.5 121.4 14.9 -12.0 -12.8 -9.2 -9.8

Narrabri 119.4 131.1 11.7 -2.3 -3.1 -0.1 -0.7

Newcastle 125.0 134.7 9.7 1.3 0.5 1.1 0.5

Nowra 112.8 125.9 13.1 -7.5 -8.3 -7.5 -8.1



Change




5 largest cities

Capital city

5 largest cities

Capital city

Nyngan 116.8 126.3 9.5 -7.1 -7.9 -3.2 -3.8

Orange 120.5 124.5 4.0 -8.9 -9.7 -3.7 -4.3

Parkes 129.1 133.4 4.3 0.0 -0.8 9.4 8.8

Port Macquarie 120.5 126.6 6.1 -6.8 -7.6 1.6 1.0

Queanbeyan 117.4 128.8 11.4 -4.6 -5.4 -2.4 -3.0

Singleton 121.0 129.6 8.6 -3.8 -4.6 -1.3 -1.9

Tamworth 114.0 128.6 14.6 -4.8 -5.6 -5.8 -6.4

Taree 119.2 130.2 11.0 -3.2 -4.0 1.3 0.7

Temora 123.9 128.0 4.1 -5.4 -6.2 4.1 3.5

Tumut 122.1 130.2 8.1 -3.2 -4.0 4.3 3.7

Tweed Heads South 126.6 142.6 16.0 9.2 8.4 5.7 5.1

Ulladulla 117.8 124.9 7.1 -8.5 -7.9 -1.0 -0.1

Wagga Wagga 120.4 128.4 8.0 -5.0 -5.8 0.3 -0.3

Wauchope 118.7 127.8 9.1 -5.6 -6.4 -0.6 -1.2

Wellington 117.9 125.5 7.6 -7.9 -7.3 -2.0 -1.1

West Wyalong 114.3 n/a n/a n/a n/a -4.4 -3.5

Wollongong 128.8 143.5 14.7 10.1 9.3 7.9 7.3

Woolgoolga 121.0 134.6 13.6 1.2 0.4 1.2 0.6

Yass 120.4 130.6 10.2 -2.8 -2.2 0.4 1.3

Northern Territory

Alice Springs 129.0 138.4 9.4 5.0 12.0 11.0 13.2

Katherine 117.7 126.5 8.8 -6.9 0.1 0.0 2.2

Tennant Creek 135.4 146.8 11.4 13.4 20.4 n/a n/a

Queensland

Atherton 119.8 129.1 9.3 -4.3 -6.5 0.9 -2.3

Ayr 111.8 124.5 12.7 -8.9 -11.1 -6.7 -9.9

Biloela 119.9 123.9 4.0 -9.5 -11.7 0.5 -2.7

Blackwater 119.8 129.2 9.4 -4.2 -6.4 -0.5 -3.7

Bowen 115.9 127.5 11.6 -5.9 -8.1 -2.7 -5.9

Bundaberg 109.6 123.2 13.6 -10.2 -12.4 -10.2 -13.4

Caboolture 125.3 135.4 10.1 2.0 -0.2 2.3 -0.9

Cairns 118.4 130.5 12.1 -2.9 -5.1 -0.2 -3.4

Charleville 115.0 n/a n/a n/a n/a n/a n/a

Charters Towers 121.8 132.2 10.4 -1.2 -3.4 2.3 -0.9

Childers 118.8 127.3 8.5 -6.1 -8.3 -2.6 -5.8



Change




5 largest cities

Capital city

5 largest cities

Capital city

Cloncurry 135.9 142.1 6.2 8.7 6.5 16.8 13.6

Dalby 121.4 130.7 9.3 -2.7 -4.9 1.0 -2.2

Emerald 133.8 137.5 3.7 4.1 1.9 13.5 10.3

Gladstone 109.0 126.4 17.4 -7.0 -9.2 -7.8 -11.0

Gold Coast 124.1 135.1 11.0 1.7 -0.5 1.2 -2.0

Goondiwindi 110.2 126.2 16.0 -7.2 -9.4 -8.0 -11.2

Gympie 115.5 127.1 11.6 -6.3 -8.5 -5.3 -8.5

Hervey Bay 115.8 127.3 11.5 -6.1 -8.3 -2.9 -6.1

Ingham 119.6 128.9 9.3 -4.5 -6.7 0.0 -3.2

Innisfail 121.5 130.7 9.2 -2.7 -4.9 0.8 -2.4

Ipswich 123.6 137.9 14.3 4.5 2.3 3.0 -0.2

Kingaroy 113.6 124.6 11.0 -8.8 -11.0 -7.0 -10.2

Longreach 131.9 136.6 4.7 3.2 1.0 12.0 8.8

Mackay 117.8 130.8 13.0 -2.6 -4.8 -1.4 -4.6

Mareeba 123.9 131.6 7.7 -1.8 -4.0 5.2 2.0

Maryborough 112.4 124.5 12.1 -8.9 -11.1 -7.3 -10.5

Miles 109.7 126.2 16.5 -7.2 -9.4 -9.3 -12.5

Moranbah 116.3 125.5 9.2 -7.9 -10.1 -4.2 -7.4

Rockhampton 116.0 129.2 13.2 -4.2 -6.4 -2.3 -5.5

Roma 119.9 124.7 4.8 -8.7 -10.9 -1.1 -4.3

Sunshine Coast 119.5 130.2 10.7 -3.2 -5.4 -1.8 -5.0

Toowoomba 126.3 136.9 10.6 3.5 1.3 4.0 0.8

Townsville 113.8 128.9 15.1 -4.5 -6.7 -3.6 -6.8

Tully 120.1 129.7 9.6 -3.7 -5.9 -0.1 -3.3

Warwick 119.8 127.4 7.6 -6.0 -8.2 0.2 -3.0

Whitsunday 109.9 123.7 13.8 -9.7 -11.9 -9.0 -12.2

Yeppoon 118.0 129.2 11.2 -4.2 -6.4 -0.4 -3.6

South Australia

Bordertown 119.6 127.5 7.9 -5.9 -4.6 -2.3 -0.2

Ceduna 119.0 129.8 10.8 -3.6 -2.3 0.2 2.3

Clare 113.1 125.3 12.2 -8.1 -6.8 -7.6 -5.5

Gawler 120.8 126.2 5.4 -7.2 -5.9 -1.2 0.9

Kadina 118.0 127.3 9.3 -6.1 -4.8 -4.7 -2.6

Keith 118.8 129.1 10.3 -4.3 -3.0 -1.3 0.8

Loxton 115.6 127.5 11.9 -5.9 -4.6 -5.1 -3.0



Change




5 largest cities

Capital city

5 largest cities

Capital city

Mt Gambier 115.8 123.2 7.4 -10.2 -8.9 -4.1 -2.0

Murray Bridge 107.2 121.2 14.0 -12.2 -10.9 -8.0 -5.9

Naracoorte 119.4 129.6 10.2 -3.8 -2.5 0.1 2.2

Port Augusta 119.2 128.2 9.0 -5.2 -3.9 -0.2 1.9

Port Lincoln 119.3 131.7 12.4 -1.7 -0.4 -1.7 0.4

Port Pirie 116.6 126.1 9.5 -7.3 -6.0 -5.3 -3.2

Renmark 117.0 129.5 12.5 -3.9 -2.6 -1.5 0.6

Tailem Bend 118.7 127.4 8.7 -6.0 -4.7 -2.8 -0.7

Victor Harbour 121.8 131.4 9.6 -2.0 -0.7 0.6 2.7

Whyalla 119.0 131.1 12.1 -2.3 -1.0 -0.7 1.4

Tasmania

Burnie 121.5 132.3 10.8 -1.1 -1.4 2.4 -3.3

Campbell Town 124.9 135.3 10.4 1.9 1.6 6.0 0.3

Devonport n/a 134.5 n/a 1.1 0.8 5.6 -0.1

Huonville 122.9 131.9 9.0 -1.5 -1.8 3.5 -2.2

Launceston 125.8 132.8 7.0 -0.6 -0.9 6.3 0.6

New Norfolk 126.1 134.7 8.6 1.3 1.0 6.2 0.5

Queenstown 127.4 138.3 10.9 4.9 4.6 9.0 3.3

Smithton 122.0 132.5 10.5 -0.9 -1.2 2.3 -3.4

Sorell 121.3 129.9 8.6 -3.5 -3.8 2.8 -2.9

Ulverstone 125.0 135.0 10.0 1.6 1.3 5.8 0.1

Wynyard 122.9 130.6 7.7 -2.8 -3.1 3.9 -1.8

Victoria

Ararat 118.8 130.3 11.5 -3.1 -5.9 -0.3 -3.5

Bairnsdale 111.8 127.1 15.3 -6.3 -9.1 -6.6 -9.8

Ballarat 110.4 126.5 16.1 -6.9 -9.7 -8.3 -11.5

Benalla 115.1 125.8 10.7 -7.6 -10.4 -3.0 -6.2

Bendigo 112.2 126.2 14.0 -7.2 -10.0 -5.1 -8.3

Cobram 119.3 129.3 10.0 -4.1 -6.9 0.3 -2.9

Colac 112.6 128.0 15.4 -5.4 -8.2 -5.5 -8.7

Corryong 122.1 135.3 13.2 1.9 -0.9 2.2 -1.0

Echuca 116.3 128.7 12.4 -4.7 -7.5 -3.6 -6.8

Euroa 120.1 130.9 10.8 -2.5 -5.3 0.6 -2.6

Geelong 111.0 125.8 14.8 -7.6 -10.4 -6.2 -9.4

Hamilton 112.3 125.1 12.8 -8.3 -11.1 -7.6 -10.8



Change




5 largest cities

Capital city

5 largest cities

Capital city

Horsham 118.8 130.0 11.2 -3.4 -6.2 -1.3 -4.5

Koo Wee Rup 127.6 140.4 12.8 7.0 4.2 8.1 4.9

Kyabram 116.3 128.5 12.2 -4.9 -7.7 -1.5 -4.7

Lakes Entrance 114.0 128.8 14.8 -4.6 -7.4 -4.4 -7.6

Leongatha 112.0 124.3 12.3 -9.1 -11.9 -6.7 -9.9

Mansfield 120.1 131.7 11.6 -1.7 -4.5 0.7 -2.5

Mildura 117.5 124.2 6.7 -9.2 -12.0 -3.4 -6.6

Moe 112.1 126.4 14.3 -7.0 -9.8 -6.7 -9.9

Morwell 112.0 126.5 14.5 -6.9 -9.7 -6.8 -10.0

Portland 115.3 123.1 7.8 -10.3 -13.1 -7.6 -10.8

Sale 117.8 127.9 10.1 -5.5 -8.3 -1.3 -4.5

Seymour 126.7 138.0 11.3 4.6 1.8 4.9 1.7

Shepparton 116.5 128.4 11.9 -5.0 -7.8 -2.1 -5.3

Swan Hill 115.6 125.0 9.4 -8.4 -11.2 -1.5 -4.7

Traralgon 112.5 127.4 14.9 -6.0 -8.8 -4.9 -8.1

Wallan 124.5 137.1 12.6 3.7 0.9 2.3 -0.9

Wangaratta 116.0 128.9 12.9 -4.5 -7.3 -3.5 -6.7

Warrnambool 110.1 123.3 13.2 -10.1 -12.9 -8.3 -11.5

Wodonga 118.5 127.3 8.8 -6.1 -8.9 -2.2 -5.4

Wonthaggi 118.1 127.5 9.4 -5.9 -8.7 -3.1 -6.3

Yarrawonga 119.8 131.0 11.2 -2.4 -5.2 0.8 -2.4

Western Australia

Albany 112.5 126.2 13.7 -7.2 -4.1 -6.9 -3.8

Boulder 120.3 130.4 10.1 -3.0 0.1 3.9 7.0

Bridgetown 120.1 128.8 8.7 -4.6 -1.5 2.0 5.1

Broome 136.3 143.8 7.5 10.4 13.5 17.5 20.6

Bunbury 116.8 129.5 12.7 -3.9 -0.8 0.3 3.4

Busselton 115.4 127.6 12.2 -5.8 -2.7 -1.5 1.6

Carnarvon 126.3 136.6 10.3 3.2 6.3 7.7 10.8

Collie 112.4 127.2 14.8 -6.2 -3.1 -6.6 -3.5

Dongara n/a 133.5 n/a 0.1 3.2 6.9 10.0

Esperance 124.0 136.0 12.0 2.6 5.7 6.9 10.0

Eucla 139.8 151.7 11.9 18.3 21.4 19.8 22.9

Geraldton 123.7 131.2 7.5 -2.2 0.9 5.5 8.6

Kalgoorlie 118.6 129.5 10.9 -3.9 -0.8 2.9 6.0



Change




5 largest cities

Capital city

5 largest cities

Capital city

Karratha 137.8 144.4 6.6 11.0 14.1 19.4 22.5

Manjimup 118.2 129.2 11.0 -4.2 -1.1 1.0 4.1

Mount Barker 111.6 126.1 14.5 -7.3 -4.2 -7.4 -4.3

Port Hedland 136.1 141.4 5.3 8.0 11.1 17.5 20.6

Waroona 117.1 127.1 10.0 -6.3 -3.2 -3.9 -0.8


Appendix C: Petrol prices and GIRDs in regional market study locationsThe ACCC undertook 4 regional petrol market studies between 2015 and 2017. These studies examined petrol markets in Darwin, Launceston, Armidale and Cairns. The ACCC has continued to monitor and report on petrol prices and GIRDs in these locations over time.

Table C1 shows average retail petrol prices and GIRDs for each location, and a comparison with those in the 5 largest cities in aggregate, in the March quarter 2021, as well as the change from the December quarter 2020.

Table C1: Quarterly average retail petrol prices and GIRDs in Darwin, Launceston, Armidale, Cairns and the 5 largest cities – March quarter 2021 – cpl

Darwin Launceston Armidale Cairns5 largest

cities

Retail prices

Average price: March quarter 2021 126.4 132.8 127.2 130.5 133.4

Change from December quarter 2020 10.0 7.0 11.8 12.1 12.0

Difference from 5 largest cities: March quarter 2021

-7.0 -0.6 -6.2 -2.9 -

Change from December quarter 2020 -2.0 -5.0 -0.2 0.1 -

GIRDs

Average GIRDs: March quarter 2021 4.1 10.5 9.2 10.2 15.8

Change from December quarter 2020 -3.6 -6.3 -1.1 -1.3 -1.6

Difference from 5 largest cities: March quarter 2021

-11.7 -5.3 -6.6 -5.6 -

Change from December quarter 2020 -2.0 -4.7 0.5 0.3 -


Notes: All prices are for RULP except Armidale (which is E10).

Hobart TGPs are used as a proxy for TGPs in Launceston.

Sydney and Brisbane E10 TGPs are used as a proxy for Armidale TGPs.

In the March quarter 2021, average prices in all of the market study locations were lower than average prices across the 5 largest cities:

� prices in Darwin, Armidale and Cairns were lower than prices across the 5 largest cities for the third consecutive quarter

� prices in Launceston were below the 5 largest cities for the first time since the ACCC released its Launceston market study in July 2016.

Motorists in these locations can use the fuel price transparency schemes in each jurisdiction to identify the highest and lowest priced retail sites. Motorists in:

� Darwin can use the MyFuel NT website and app

� Launceston can use the FuelCheck TAS website and app

� Armidale can use the FuelCheck NSW website and app

� Cairns can access site-specific petrol price data made available by commercial websites and app providers under the Queensland fuel price reporting scheme.

report on the australian petroleum market march quarter 2021 report on...mar qtr 17.4 15.8 girds...

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