Australian fuel companies pass on excise hike to retailers
Sydney (6 July)
Australian importers and refiners have passed on the Australian Government’s 1 July fuel excise hike to retailers, but wholesale fuel price increases have not fully flowed to motorists yet, price data show.
Fuel retailers will pass on the Government’s A$0.16/litre excise hike to motorists over time to account for existing inventory turnover and competition, multiple companies told the Australian Competition & Consumer Commission (ACCC) over the week to 3 July.
Average wholesale petrol prices rose by between A$0.14/litre and A$0.16/litre across Australia’s largest capital cities over 30 June – 1 July, largely because of the Government’s excise hike, data from the ACCC show.
But retailers only increased their average petrol prices by between A$0.02/litre and A$0.06/litre in most capital cities – except Perth – over the same period, ACCC data show. Petrol stations in Perth lifted their prices by A$0.16/litre, on average, between 30 June and 1 July.
Refiners and importers similarly boosted their average wholesale diesel prices by between A$0.13/litre and A$0.16/litre across large capitals over 30 June-1 July. Retailers, on the other hand, only raised consumer diesel prices by between A$0.02/litre and A$0.09/litre over the same period.
Retailers have raised consumer diesel and petrol prices across most Australian states – except Western Australia (WA) – since 1 July, but have not fully passed on the Government’s excise increase to motorists yet.
Diesel and Unleaded 91 octane petrol prices in New South Wales averaged A$1.71/litre on 5 July, up A$0.10/litre from 30 June and A$0.06/litre from 1 July, data from Government-run price monitor NSW FuelCheck show.
Retailers in WA’s metropolitan areas sold petrol for an average price of A$1.66/litre on 5 July, up A$0.01/litre from 1 July, data from price monitor FuelWatch and the ACCC show.
Australia’s excise-driven fuel price rises come alongside national fuel reserve increases. Australia has 41 days’ worth of petrol reserves, 38 days’ worth of diesel reserves, and 34 days’ worth of jet fuel reserves, Energy Minister Chris Bowen told reporters on 4 July.
The country’s jet fuel and diesel reserves are up by five days and one day on the week, respectively, but its petrol reserves are down by three days on the week, Bowen added.
Ships carrying 3.6 billion litres of fuel – including diesel, petrol, jet fuel, and crude oil – will arrive in Australia over the next month, according to Bowen. Planned fuel deliveries are unchanged from a week ago.
By Avinash Govind