The ACCC’s 2013 petrol report, released today, dispels the myths around petrol margins, price gouging and the perceived high price of petrol in Australia, according to ACAPMA CEO Nic Moulis.

The report shows that Australian petrol prices are still among the lowest in the OECD.

“This yearly report by the ACCC, while it doesn’t necessarily report on the smaller operators that make up our membership, does give us a good benchmark in relation to what is happening with bigger operators in this country,” he said.

Moulis said the report showed what operators already knew – that international prices and local taxes and excise made up the bulk of the price at the pump.

“The report showed that the average annual price was 141.3 cents per litre – down from 142.8 cents per litre last year,” Moulis said.

“Of this, the international market price of refined petrol contributed 74.2 cents a litre (53 per cent) while government taxes contributed 51.0 cents a litre (36 per cent).

“That leaves just 11 per cent – or a little more than 15 cents a litre – for the retailer. Once you take away operating costs such as wages, utilities, transport and more, there’s not much left in profit.”

Moulis also said the report highlighted that smaller losses in refining and higher profits in retail were the main contributors to increased industry earnings.

It showed that in 2012-13 net profits in the retail sector of the downstream petroleum industry increased to $535 million across all products and services, up 18.9 per cent on the previous year in real terms. Profits from convenience store sales were up 17.1 per cent in real terms to $205 million.

“While this is good news for the sector, many of the smaller independent retailers, especially in the regional areas, don’t have the benefit of strong convenience store sales to prop up their business,” Moulis said.

“Which is one reason why petrol pricing in regional and rural areas remain higher than those in the cities.”

International prices of crude oil and refined petrol have remained at historically high levels despite weak global economic conditions, and the relatively high Australian dollar has provided some protection from higher international prices.

“This report, combined with last week’s agreement to cap shopper docket discounts, adds up to some fuel for thought for petrol retailers and some good news for consumers in the lead up to Christmas,” Moulis said.

“And we are looking forward to the results of the Federal Government’s promised “root and branch” review of competition policy, which we hope addresses the serious competition issues facing the Australian economy.”

Background:

The Australasian Convenience and Petroleum Marketers Association (ACAPMA) is a notforprofit employer organisation that has represented the interests of businesses in the petroleum distribution and petrol convenience industries for over 38 years.

As the leading association and national peak body responsible for the development and growth of the petroleum distribution and petrol convenience retail industries, ACAPMA members include over 90 per cent of the 120 businesses that operate in petroleum distribution and storage, while representing through direct ownership, operation or supply – over 3,500 service stations. ACAPMA’s membership profile in the main is independent smalltomedium businesses operating in metropolitan as well as regional and rural Australia.
ACAPMA’s CEO, Nic Moulis