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NRMA Price Gap analysis reveals anomalies


NRMA Price Gap analysis reveals anomalies

Author: NRMA MediaDate: 18 March 2008

NRMA Motoring & Services' new Price Gap analysis has found a number of recent instances where the price increase of petrol was at least 10 per cent higher than the increase in the industry benchmark price.

Price Gap is NRMA’s suggested petrol price after taking into consideration the industry benchmark Singapore Mogas price, the exchange rate and comparing it to the average daily price in Sydney.

The NRMA used the Price Gap formula to examine 600 days worth of data and found several regular pricing anomalies.

Launching the new service today, NRMA President Alan Evans revealed recent anomalies, which include:

  • An 11.8 per cent price difference on 6 March 2008 (10.2 cents)
  • An 11 per cent price difference on 21 February 2008 (10.5 cents)
  • A 10.8 per cent price difference on 16 January 2008 (9.3 cents)

"Price Gap is the latest salvo in NRMA’s war to bring fairness and transparency to the petrol industry," Mr Evans said.

"Every time we identify a price gap larger than five per cent we will notify the ACCC.

"The NRMA doesn’t have the powers to pull oil companies into line - that is a job for the Australian Government - but the NRMA can keep the oil companies under the microscope.

"In the lead up to Christmas motorists were mugged at the bowser by oil companies taking advantage of families going on their holidays.

"Let's be perfectly clear: the oil companies are under surveillance this Easter."

The NRMA’s suggested price will be published each morning on the NRMA’s website - www.mynrma.com.au. The NRMA hopes the Petrol Commissioner will provide the service nationwide when he begins his role.

The comparison between the two prices is done after excluding the fuel excise and GST and assumes that external costs remain constant. This is necessary to gain an accurate comparison between the average price in Sydney and the benchmark Singapore Mogas price.

The Singapore Mogas price has a seven-to-10-day lag before it affects the Australian price at the bowser.

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